UK-based challenger bank Monzo has raised £85m in its newest round of funding, ahead of launching a new crowdfunding campaign.
The investment round was led by General Catalyst, with participation also coming from Accel. Existing investors of Monzo also took part in the round.
Through the new wave of capital, the challenger bank will expand its customer base across the UK, and enhance its customer service. Alongside this, Monzo is looking to develop new features including ‘Savings Pot’.
Due to the bank’s success through crowdfunding, it is looking to launch a new campaign later this year.
In 2016, the company raised £1m in a crowdfunding campaign, reaching the goal in just 96 seconds, according to Monzo. Following this, the company re-entered the market and raised a £2.5m crowdfund, with over £12m being pledged.
The FinTech is now setting its sights on a new round, which will be ‘much larger’.
In a blog post the company said, “Over the last 12 months we’ve grown Monzo to more than one million customers. At the beginning of this year, we asked everyone to upgrade to full Monzo current accounts, and nearly 95% of our users came with us. Since then, we’ve rolled out some great new features, like joint accounts, accounts for 16-year olds, and most recently, our super simple bill splitting functionality.
Alongside this, we’re seeing incredible levels of customer engagement, with our Net Promoter Score at around 80, monthly active customer numbers of nearly 800,000 and more than 35,000 people on our community forum.”
Late last year, Monzo raised a £71m investment round with contributions from Goodwater Capital, Stripe and Michael Moritz’s Crankstart Foundation, among others.
Over the past 12 months, the challenger bank has made a handful of partnerships. Most recently, the company integrated with Money Dashboard to give its current account users will be able to gain a real-time view of their transactions, balances and savings.
Other companies to partner with Monzo this year include personal finance chatbot Plum, KYC solution Jumio and Banking app Emma.
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