Monzo valued at $4bn after new funding round

The UK-based digital bank has raised £340m

Monzo, a UK-based digital bank, has raised £340m to give the challenger bank a valuation of £4bn. The investment will be used to grow the business, develop its products and reach more customers. 

The funding was led by new investor CapitalG, Alphabet’s independent growth fund that has also backed companies like Stripe and Airbnb.  

Other tech investors like GV (Google Ventures) and HongShan Capital, a Chinese venture capital giant, also participated in the round, alongside existing investors including Passion Capital and China’s Tencent.  

Founded in 2015, Monzo provides personal accounts, savings and investments and business bank accounts. It is active in the US and offers a buy now, pay later service and an investment platform.  

In 2023, Monzo reported that it hit monthly profitability for the first time and doubled its revenues year-on-year. 

Monzo has nine million retail customers in the UK, 2 million of which were added in 2023. It has around 400,000 business customers.  

The fintech was valued at £3.5bn in 2021 after a previous funding round from backers including Tencent, the Abu Dhabi Growth Fund and Accel.

TS Abnil, Monzo’s cheif executive officer, said: “With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers’ financial lives.”

Image: Monzo 

Josh Poyser Josh Poyser is an editor at FinTech Intel. He has written about fintech for several years and appeared at FinTech Connect 2023 on the 'Unlocking Success: The Art of Fintech PR' panel.