Investors in £60m round for Monzo at £1.24bn valuation

Katharine Hidalgo
03 December 2020

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Investors have taken part in a ТЃ60m funding round for online bank Monzo.

The new funding comes from several new backers, including Deliveroo and Stripe investor Novator, Kaiser and TED Global, as well as existing investor Goodwater.

The company has suffered through the lockdown, with its valuation dropping from £2bn to £1.24bn from 2019 to 2020. This round also values the company at £1.24bn.

Monzo has been using the UK furlough scheme and made roughly 80 employees redundant in the summer of 2020. In addition, Monzo made a round of US layoffs and shuttered its Las Vegas-based customer support office, according to TechCrunch.

The bank will use the fund to continue growing and increasing revenue lines beyond interchange fees.

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.

In June 2020, Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive and Passion Capital participated in a £60m funding round for Monzo, giving it a valuation of £1.24bn. The company also saw participation from new investors Reference Capital and Vanderbilt University.

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).