Monzo, the UK’s largest digital bank, boasting over nine million customers, has closed a funding round, raising $430m.
The investment was spearheaded by CapitalG, Alphabet’s independent growth fund renowned for its investments in companies like Stripe and Airbnb. This round also welcomed contributions from a mix of leading global tech investors, including GV (Google Ventures) and HSG (HongShan Capital), alongside support from existing backers Passion Capital and Tencent.
The funding has propelled Monzo’s valuation to an impressive $5bn.
This substantial financial injection comes on the heels of a year marked by record growth for Monzo, positioning it as a profitable entity with an expanding customer base and an array of new product offerings. The bank now serves over nine million retail customers, with an additional 400,000 business accounts, highlighting a significant growth spurt with two million new customers acquired in 2023 alone. Monzo’s journey into profitability in March 2023 underscores its successful diversification strategy and the launch of innovative products like Instant Access Savings, Monzo Investments, Cashback, Mortgage Tracker, and the Call Status fraud prevention tool, among others.
The newly acquired capital will be channelled towards fuelling Monzo’s expansion ambitions, following a trajectory of record growth. The bank plans to leverage these funds to further enrich its product roadmap, aiming to cement its position as the go-to app for managing customers’ entire financial lives. This strategy is part of Monzo’s broader ambition to not only scale its operations to new heights but also to continue innovating and offering unparalleled service in the financial sector.
Monzo CEO TS Anil commented on the funding round, expressing the company’s momentum and its aim to utilise the investment to achieve its ambitious goals. ”
“We’ve built incredible momentum in the business over the past few years which has led to us reaching more than 9 million customers, turning profitable and launching even more ground-breaking products. With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers’ financial lives. Each milestone we’ve reached to this point has given us more strength and speed to make strides towards our mission – now we’ll scale to even greater heights and seize the huge opportunity ahead.”
Gene Frantz, General Partner at CapitalG, also shared his enthusiasm about the investment, lauding Monzo for its innovative approach and customer-centric services. ”
We’re thrilled to lead this investment round in Monzo. In an industry long rife with stagnation and uninspired customer service, Monzo has emerged as the innovative, customer-centric bank that consumers have long craved. Led by CEO TS Anil, Monzo is an exceptional company combining the best of banking and technology. We’re excited to support Monzo’s journey to provide customers in the UK and beyond with unique and inspiring digital experiences that they can depend on for all of their financial needs.”
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
