Monzo Bank 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 after Monzo raised £340 million ($425 million). That means the London-based company will have more than $610 million in 2024 and has raised $1.5 billion since its founding nine years ago.
The first tranche of the Series I round saw a rare co-investment by Alphabet's CapitalG and Google's GV, along with prominent backers such as HongShan Capital (formerly Sequoia Capital China), Passion Capital, and Tencent. The extension sees existing investors such as CapitalG pump even more cash into the pot with new backer Hedosophia, which previously backed Monzo rival Wise.
Monzo announced in March that it had a pre-money valuation of £3.6 billion ($4.6 billion) and an after-money valuation of £4 billion ($5 billion). The company now says the post-funding figure is £4.1 billion ($5.2 billion), meaning there has been no significant change in the past two months.
Monzo is primarily known for its domestic UK market, but has been trying to enter the US market for several years. However, the company does not have its own banking license and has been operating it as a mobile banking app in partnership with Sutton Bank in Ohio since early 2022. The company appointed a new CEO for its U.S. operations in October and hired a global head of product for Block's Cash. App, Connor Walsh will lead the U.S. national team.
In the UK, Monzo currently claims to have over 9 million retail customers and over 400,000 business area customers. The company's revenue doubled in the most recent fiscal year. And with a real war chest at its disposal, the company is well-funded to try to emulate some of this success.
“The significant interest from investors around the world is evidence of the momentum and strength of our business model and the commitment of our team to put customers at the center of everything we do,” Monzo CEO of TS Anil said in a statement. Stated. Published on TechCrunch. “With further fuel for our ambitions and a pipeline of exciting products in place, there is no doubt in my mind that the best for Monzo is yet to come.”