Monzo to raise £50 million in new funding

The equity funding is coming from existing investors and one new firm, San Francisco-based Octahedron Capital

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Monzo to raise £50 million in new funding

Monzo, the UK digital bank, is raising an additional £50 million through an extension of its series G funding round.

The equity funding is coming from existing investors and one new firm, San Francisco-based Octahedron Capital, according to Business Insider.

Sky News journalist Mark Kleinman says the new funding takes Monzo’s total raised during the Covid-19 pandemic to £175 million.

No new valuation of the digital bank is available, but previous funding rounds put it at around the £1.2 billion mark.

Monzo claims to have around five million customers, along with more than 500,000 business users and over 100,000 paid-for current account users.

The new funding follows the departure of founder Tom Blomfield last month. He told TechCrunch that he felt unable to turn Monzo into a “10 or 20 million customer bank and getting to profitability and IPOing it”.

Monzo was among the least optimistic UK digital banks last year, after reporting losses of £113.8 million and warning that Covid-19 could have a negative impact on its business.