Monzo now has 7 million customers and expects to break even in 2023

Monzo has told its tens of thousands of retail investors that it expects 2023 will be the year the neobank breaks even, having now been cash flow positive every month since October 2022.

The news was shared in a Crowdcube investor update with the 47,677 backers who’ve supported the fintech across four crowdfunding rounds since 2016.

In its last annual results, covering the 12 months to March 2022, Monzo posted a narrowed loss of £119m, down from around £130m in 2021.

As well as the expectation of profitability, Monzo also revealed in the update that its annualised revenue in December 2022 stood at £440m, up around 2.5x on the previous year.

Monzo didn’t break down which products had driven its revenue growth, but said there are now over 350,000 customers subscribed to its Monzo Plus or Monzo Premium plans (£5/month and £15/month respectively).

It also revealed over 200,000 businesses bank with Monzo, a portion of which presumably pay £5/month for Monzo’s Pro business account.

Overall the bank has now reached 7 million customers, averaging 150,000 new signups each week, making it the 7th largest UK bank by number of customers.

Finally, Monzo teased its upcoming ‘investments’ offering, which we first got wind of in January 2022 when the neobank posted a job ad for a “general manager, Investments… to build and run the most exciting new business at Monzo - investments and wealth".

In the Crowdcube investor update, Monzo explained: “It's no secret that we’ve been working on an investments product.” 

“Customer research showed there’s an unmet need for simple and easy-to-understand investment services and we’re hoping to do something about that. We'll keep you posted as things develop so watch this space!”