Fintech
British challenger bank Monzo gets another $190m as US expansion appeals
Monzo has raised another £150 million ($190 million), as the challenger bank looks to expand its presence internationally, particularly in the US
The new round comes just two months later Monzo raised £340 million ($425 million), meaning the London-based company has now raised more than $610 million in 2024 and $1.5 billion since its inception nine years ago.
The first tranche of the Series I round saw Alphabet’s CapitalG and Google’s GV make a rare co-investment, alongside notable backers including HongShan Capital (formerly Sequoia Capital China), Passion Capital and Tencent. This extension saw existing investors like CapitalG throw more money into the pot, along with new backers Edosophywho had previously supported Monzo rival Wise.
In March, Monzo said its pre-money valuation was £3.6 billion ($4.6 billion), which translates to a post-money valuation of £4 billion ($5 billion) . Now, the company says its post-money figure is £4.1 billion ($5.2 billion), meaning not much has changed in the last two months.
Although Monzo is mainly known in the UK domestic market, it has been trying to crack the United States for a few years. But without its own banking license, it works as a mobile banking app partnership with Sutton Bank of Ohio from the beginning of 2022. The nominated company a new CEO for its US operations in October, hiring global head of product for Block’s Cash App, Conor Walshto lead the United States.
In the UK, Monzo now has more than 9 million retail customers and 400,000 corporate customers. Its revenues doubled in the most recent financial year and, with a veritable war chest at its disposal, the company is well-funded to try to emulate some of this success overseas.
“The enormous interest we see from global investors is testament to the momentum and strength of our business model and the commitment of our teams, who put our customers at the heart of everything we do,” he said in a statement Monzo CEO TS Anil. released to TechCrunch. “With even more fuel for our ambitions and exciting products in the pipeline, I have no doubt that Monzo’s best is yet to come.”