This summer challenger bank Monzo suffered through a £60m down round as the pandemic took its toll. Now it has raised a second raise for the same amount at the same $1.2bn valuation.
The round was backed by Deliveroo and Stripe investor Novator, Kaiser, and TED Global, as well as existing investor Goodwater who joined Y Combinator, General Catalyst, Accel, Passion, Thrive and Stripe, who all re-invested earlier this year, TechCrunch reported.
This brings the total injected into Monzo to £125m since the coronavirus crisis broke out. The last £5m were reportedly added as a top up to the £60m round recorded this summer.
That round that summer saw the neobank’s valuation plummet by 40% from the $2bn valuation recorded a year earlier when it raised a £113m round.
Sharing the news about the new round with TechCrunch, Monzo said it is now approaching having five million customers overall and over 60,000 business customers, representing a significant increase from the 25,000 recorded in March.
In July, Monzo revealed its annual post-tax loss for had increased from £47.1m in 2019 to £113.8m in 2020. Reasons for this increased lost are placed on the bank’s expansion efforts, which saw it enter the US, hire more staff and increase marketing, the article said.
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