Monzo closes £60m funding round at a 40% discount
Shares in the digital bank are now worth the same as they were in December 2018.
Currently, there are only two known new investors, Swiss investment fund Reference Capital and Vanderbilt University.
“This means we can keep growing and building products that give people more control over their money – even in the current economic climate.”
Monzo also noted that shares in the digital bank are now worth £7.7145, the same as they were worth back in December 2018 and a significant decrease from the £13.0194 they were worth in June 2019.
To make up for the gap in value, Monzo has issued additional shares to investors who took part in the Series F round to “put them in the same position as if they’d invested then at a share price of £7.7145.”
Of late, Monzo has faced a series of hurdles owing to the economic turmoil created by the coronavirus pandemic.
It was one of the first fintechs to furlough staff, placing 295 employees onto the government-backed scheme on a voluntary basis and top executives took a 25 per cent pay cut, as well as co-founder Tom Blomfield giving up his salary entirely.
Just shy of a month ago, it was also revealed that Blomfield would step down from the CEO role and assume the position of President, leaving US CEO TS Anil to step into the group CEO position.