Monzo has
announced a €397 million ($400 million) funding round led by CapitalG, Google’s
independent growth fund. The UK’s largest digital bank, with over 9 million
customers, is currently valued at $5 billion.
Monzo Raises €397 Million
to Fuel Expansion Plans
The round
also saw participation from global tech investors, such as GV (Google Ventures),
HSG (HongShan Capital), and existing backers (Passion Capital and Tencent).
The funding
round values Monzo at a post-money valuation of $5 billion, a significant
increase from its previous $4.5 billion valuation in late 2021. The new capital
will accelerate Monzo’s expansion plans following a year of record growth that
saw the company achieve profitability, attract millions of new customers, and
launch a range of new products.
According
to TS Anil, the CEO of Monzo, the funding will provide “rocket fuel”
to pursue the company’s ambitions “harder and faster”, with the goal
of building Monzo into “the one app that sits at the center of our
customers’ financial lives.”
Monzo hits $5 billion valuation on $430 million funding round https://t.co/5PoVZhT2cW
— Finextra (@Finextra) March 5, 2024
Monzo has
experienced rapid growth in recent years, with over 9 million retail customers
and 400,000 business customers. In 2023 alone, the bank added 2 million new
customers and saw substantial revenue growth driven by its diversification
strategy.
The company
reported profitability in March 2023 and launched several new products and
features, including Instant Access Savings, Monzo Investments, Cashback,
Mortgage Tracker, and the industry-first Call Status fraud prevention tool.
Investor Confidence in
Monzo’s Innovation
Gene
Frantz, the General Partner at CapitalG, expressed confidence in Monzo’s innovative
and customer-centric approach. “In an industry long rife with stagnation
and uninspired customer service, Monzo has emerged as the innovative,
customer-centric bank consumers have long craved,” he commented.
Frantz highlighted Monzo’s combination of banking and technology, and CapitalG’s “excitement”
to support the company’s journey in providing “unique and inspiring
digital experiences” to customers in the UK and beyond.
Closing
this funding round , worth hundreds of millions of dollars, confirms reports
that Finance Magnates informed about two weeks ago. It also stands as an
exception to the trend in the European fintech scene, which has recently faced
significant challenges in securing financing.
Fintech Funding Plummets
in Europe
The recent KPMG
Pulse of Fintech report highlights significant challenges the fintech
industry faces, with a sharp decline in global investments in 2023. The sector
saw its funding decrease to $113.7 billion from $196.3 billion the year before,
marking the lowest number of deals since 2017, totaling 4,547.
Africa, like everywhere else, saw VC winters set in hard in 2023. However, in the #Fintech space, while equity funding was down by 43% vs. 2022, debt funding increased by 34% to $647M. 💳🌍
Read the latest findings and stories in this week’s newsletter: https://t.co/tlcRSXgkSP pic.twitter.com/mQ8eYbxsM5
— Lucidity Insights (@LucidityInsight) March 1, 2024
However,
the latter half of 2023 witnessed a slight uptick in investment, rising from
$55.5 billion to $58.2 billion. Six major deals drove this increase, each
exceeding the $1 billion threshold, indicating some resilience within the
fintech space.
Additionally,
Innovate Finance’s analysis presents a contrasting scenario in the
United Arab Emirates where fintech funding soared 92%. This showcases that
despite the overall downturn, certain regions and transactions, like the
anticipated funding round for Monzo, demonstrate the fintech sector’s capacity
for significant deals and growth amidst a generally contracting market.
Monzo has
announced a €397 million ($400 million) funding round led by CapitalG, Google’s
independent growth fund. The UK’s largest digital bank, with over 9 million
customers, is currently valued at $5 billion.
Monzo Raises €397 Million
to Fuel Expansion Plans
The round
also saw participation from global tech investors, such as GV (Google Ventures),
HSG (HongShan Capital), and existing backers (Passion Capital and Tencent).
The funding
round values Monzo at a post-money valuation of $5 billion, a significant
increase from its previous $4.5 billion valuation in late 2021. The new capital
will accelerate Monzo’s expansion plans following a year of record growth that
saw the company achieve profitability, attract millions of new customers, and
launch a range of new products.
According
to TS Anil, the CEO of Monzo, the funding will provide “rocket fuel”
to pursue the company’s ambitions “harder and faster”, with the goal
of building Monzo into “the one app that sits at the center of our
customers’ financial lives.”
Monzo hits $5 billion valuation on $430 million funding round https://t.co/5PoVZhT2cW
— Finextra (@Finextra) March 5, 2024
Monzo has
experienced rapid growth in recent years, with over 9 million retail customers
and 400,000 business customers. In 2023 alone, the bank added 2 million new
customers and saw substantial revenue growth driven by its diversification
strategy.
The company
reported profitability in March 2023 and launched several new products and
features, including Instant Access Savings, Monzo Investments, Cashback,
Mortgage Tracker, and the industry-first Call Status fraud prevention tool.
Investor Confidence in
Monzo’s Innovation
Gene
Frantz, the General Partner at CapitalG, expressed confidence in Monzo’s innovative
and customer-centric approach. “In an industry long rife with stagnation
and uninspired customer service, Monzo has emerged as the innovative,
customer-centric bank consumers have long craved,” he commented.
Frantz highlighted Monzo’s combination of banking and technology, and CapitalG’s “excitement”
to support the company’s journey in providing “unique and inspiring
digital experiences” to customers in the UK and beyond.
Closing
this funding round , worth hundreds of millions of dollars, confirms reports
that Finance Magnates informed about two weeks ago. It also stands as an
exception to the trend in the European fintech scene, which has recently faced
significant challenges in securing financing.
Fintech Funding Plummets
in Europe
The recent KPMG
Pulse of Fintech report highlights significant challenges the fintech
industry faces, with a sharp decline in global investments in 2023. The sector
saw its funding decrease to $113.7 billion from $196.3 billion the year before,
marking the lowest number of deals since 2017, totaling 4,547.
Africa, like everywhere else, saw VC winters set in hard in 2023. However, in the #Fintech space, while equity funding was down by 43% vs. 2022, debt funding increased by 34% to $647M. 💳🌍
Read the latest findings and stories in this week’s newsletter: https://t.co/tlcRSXgkSP pic.twitter.com/mQ8eYbxsM5
— Lucidity Insights (@LucidityInsight) March 1, 2024
However,
the latter half of 2023 witnessed a slight uptick in investment, rising from
$55.5 billion to $58.2 billion. Six major deals drove this increase, each
exceeding the $1 billion threshold, indicating some resilience within the
fintech space.
Additionally,
Innovate Finance’s analysis presents a contrasting scenario in the
United Arab Emirates where fintech funding soared 92%. This showcases that
despite the overall downturn, certain regions and transactions, like the
anticipated funding round for Monzo, demonstrate the fintech sector’s capacity
for significant deals and growth amidst a generally contracting market.
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- Source: https://www.financemagnates.com//fintech/payments/google-bets-big-on-monzo-values-the-uk-fintech-at-5-billion/
