“We will be profitable in the next financial year,” TS Anil, chief executive of Monzo, told the FT’s banking summit on Thursday.
Monzo is still far from becoming profitable. From March 2021 to March 2022, Monzo ended up with a loss of £119m (The loss was£130m the previous year).
However, this comparison includes non-recurring items. If we consider recurring costs-only, Monzo’s losses actually went up by £3m from £116.2m in the year ending March 2021 to £119m for the latest figures.
But according to June 2022’s revenue figures, heading for further substantial growth in revenue. June’s numbers suggest an annual revenue run rate of £270m.
Klarna was just recently Europe’s most valuable private technology company. However, its valuation was slashed and said in May it would be cutting 10 per cent of jobs in a pivot towards “short-term profitability”.
“In the tech space you saw a lot of companies who built business models out of free or cheap cash,” said Anil.
“We’ve never been one of those companies who have a bloated headcount when things are good and panic when things get worse.”
Monzo claimed this July it had 5.8 million customers. This, according to the annual report represents an increase of one million compared with the end of March 2021.
Monzo also has to face a probe by the Financial Conduct Authority into potential breaches of anti-money laundering laws. Anil did not comment on the investigation but said financial crime was an “industry challenge.”