Monzo bank’s losses jumped from £47.2m to £113.8m amid a hiring spree, marketing and US expansion.
This sharp increase in losses is not getting covered by Monzo’s rise in revenues from 19.7m to £67.2m. Monzo’s directors to compile its results under the basis of there being: “material uncertainties, which may cast doubt over the Group’s ability to continue as a going concern.”
Last month the bank raised £58m from investors at a 40 percent discount to its previous valuation.
Read also: Monzo’s valuation drops by 40% to £1.25B as it sealed a £60M funding round
Chief executive TS Anil said: “Similar to many businesses, we’re seeing a significant impact from COVID-19 and the resulting economic downturn. While I’m confident these are short-term, we’ve taken decisive measures to reduce the financial impact.”
“Over the coming months, we’ll launch powerful new products that help people manage their money better, as well as drive revenue, and cement our place as the UK’s most recommended and fastest-growing bank,” he added.
Anil was previously assigned as a leader for the Monzo’s US push before becoming the CEO. He has 25-year financial services experience, previously he was Visa’s global head of payment products and platforms but he has also worked for Citi, Capital One, and Standard Chartered.
“Honestly nothing fazes TS. He really can handle high amounts of stress and never shows it. I watched him transform a business and lead through the financial crisis,” Meghan Connolly, who worked under Anil at Standard Chartered told Sifted.
Founder Tom Blomfield, who became Monzo’s president earlier this year, said although this year would be a challenging time for the bank, ‘our focus right now is on becoming a sustainable company that’s here for the long haul.’