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Monzo Bank Ltd. to raise fresh funding worth GBP 100 million

Author : Pankaj Singh | Published Date : 2019-12-30 

 

  • The deal which is an extension of an earlier fundraising round is likely to be completed by early 2020
  • Monzo may hold its next “Series G” fundraising round in 2020

Monzo Bank Ltd.- a London based digital, mobile-based entity is reportedly set to raise fresh funds between £50 million and £100 million.

The company has been in talks with current and potential investors since it raised £113m as equity capital in the month of June. As per reliable resources, the upcoming deal is an extension of the fundraising round held six months ago and is set to be completed by early next year.

For the record, Monzo Bank Ltd. was established in the year 2015 as an app-based banking solution. This year, the company has reportedly doubled its valuation to more than £2 billion. In June 2019, the investment round was led by Y Combinator Continuity as a part of the eponymous Silicon Valley start-up accelerator that assisted in the introduction of companies such as, Airbnb and Dropbox and Monzo’s current backers including Accel, Orange, and Stripe.

Founded by British entrepreneur- Tom Blomfield, Monzo has grown rapidly attracting over 3 million customers and 55,000 sign-ups in a week. In September, the company stated that nearly £50,000 was spent through its platform every minute and a total of £18 billion has been spent by its users till date.

Mr. Blomfield, CEO, Monzo Bank Ltd. was reportedly quoted stating that the company is likely to witness losses during the year since it has initiated an advertising campaign that aims at sustaining growth in the number of customers. Rising revenues and an enhanced consumer base will support development in the company’s operations, he further added. 

Digital banking entities such as Monzo and its competitors like Starling and Revolut have proven to be successful at Digital banks such as Monzo and rivals such as Starling and Revolut have been effective at attracting the attention of users by providing perks like cost-effective foreign exchange transactions, however, have a harder time convincing the customers to make the leap to using the digital banking as their primary bank account.

The company’s latest annual report suggests that the number of customers depositing salaries crossed 30% towards the end of February, showcasing a growth from 12% as compared to the previous year.

Reportedly, Revolut comprising of nearly 8 million customers announced plans of global expansion in the month of October. It has appointed bankers to raise £1.2bn which may value at USD 10 billion.
 

Source Credits: https://www.ft.com/content/bf5af050-2a39-11ea-bc77-65e4aa615551
 

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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