8.6 C
New York
Thursday, March 23, 2023
Home Challanger banks Monzo valuation hits $4.5 billion

Monzo valuation hits $4.5 billion

British digital bank Monzo has hit $4.5bn valuation after a $500m funding round.

Read also: Nik Storonsky wants UK banking license by the start of 2022

At this point, Monzo has more than 5 million customers. However, the company struggled to turn a profit.

Monzo even faced a regulatory investigation over a potential breach of anti-money laundering rules.

The last two years were very tough for the bank but it seems that the worst has passed.

“This investment means we’ll grow further and faster as we continue on our journey to reinvent banking, and become the one app that sits at the centre of our customers’ financial lives,” Monzo CEO TS Anil said in a statement.

Anil was previously credited for turning around loss-making units of CitiCard in Japan during a difficult time. He was also recognised as a bright talent by Standard Chartered, who snagged him to make him one of its youngest leaders at the age of 42.

“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.

An average deposit per user was at £620 in February this year. Monzo also has the largest market share among UK digital banking users, with 39%.

With a valuation of $4.5bn, Monzo is now Europe’s third most valuable digital bank, behind Revolut and N26.

Monzo is now focused on growing its userbase, lending and boosting revenues. It’s putting its hopes in Monzo Flex, its new buy now, pay later feature.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Is the Fintech Bubble About to Burst? Lessons from Credit Suisse’s Collapse

Last week, UBS acquired Credit Suisse in a $3.25 billion rescue deal. This event has raised concerns about the viability of business models of highly valued fintech startups.

Zeta and Featurespace Join Forces to Offer Innovative Credit Card Processing and Fraud Detection Solution

Modern core banking technology provider Zeta and fraud prevention company Featurespace announced a new partnership on March 22, 2023.

Fintech Companies Put a Hiring Freeze Due to Economic Climate

A major new report by Erlang Solutions has revealed that half of all fintech firms have put a stop to hiring staff in 2023 due to the challenging economic climate.

Recap of FinovateEurope 2023: Key Themes and Takeaways

With a focus on innovation and customer needs, the future looks bright for the industry.