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