VCs invest £60m in Monzo for £1.24bn valuation

Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive and Passion Capital participated in the funding round. The company also saw participation from new investors Reference Capital and Vanderbilt University.

The reduction in the company's valuation is said to be due to a number of Monzo's later-stage investors attempting to force down the bank's ticket price. The company has seen customer spend, both domestically and internationally, reduce dramatically, thus resulting in less revenue from interchange fees, according to a report by TechCrunch.

Previous funding
Passion first invested in Monzo in June 2015, backing a £2m seed round alongside private investors. Between that investment round and a £71m round in late 2017, the company raised an additional £103m over four funding rounds and two crowdfunding campaigns.

General Catalyst led an £85m round for the business alongside Accel in October 2018.

Y Combinator Continuity led a £113m series-F funding round for Monzo in June 2019. LocalGlobe also took part in the latest round via its recently launched series-B-focused vehicle Latitude, alongside existing investors General Catalyst, Stripe, Passion Capital, Thrive, Goodwater, Accel Partners and Orange Digital Ventures.

According to various media reports at the time, the funding round valued the business at around £2bn, double the £1bn valuation it had following its previous funding round.

Company
Founded in 2015 and headquartered in London, Monzo is an online bank. It launched its business bank account line in March 2020, having previously focused on consumer prepaid cards.

People
Monzo – Tom Blomfield (president).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Expansion
• UK / Ireland
• Financials
• Venture
• United Kingdom