UK digital bank giant Monzo has reached a $4.5bn valuation after it recovers from its slump in 2020.
The challenger bank reached the new valuation after closing a $500m investment led by Abu Dhabi Growth Fund, according to a report from The Financial Times. Contributions also came from Coatue and Alpha Wave Ventures, as well as existing backers Accel and Goodwater.
This investment comes after Monzo has recorded 200% growth since the start of the year, it said.
Monzo CEO TS Ani told The Financial Times, “This round comes off the back of a fantastic year for Monzo,” “We’ve seen record revenues, launched new products and tools and continued to top the charts for our services. We’ve hired some incredible talent.”
The digital bank had a tough time in 2020, with it suffering a 40% devaluation in June 2020, which saw its value drop down from $2bn to $1.24bn. Another signs of worry at the bank came when it announced it had doubled its losses. The losses had stood at £47.1m in 2019 and had jumped to £113.8m in 2020.
The bank also had to make a lot of layoffs. Monzo fired 120 members of its staff, close its Las Vegas office and lose the 165-strong team, and furloughed 165 members of its UK team.
While 2021 has seen Monzo’s growth rapidly accelerate, it has still faced a couple of issues. The UK’s financial regulator, the FCA, is investigating the bank over potential breaches of financial crime and money laundering regulations.
Copyright © 2021 FinTech Global