Monzo quietly adds £60m to its last funding round

Digital bank Monzo has quietly topped up its earlier fundraising round with a cool £60m according to TechCrunch.

The challenger bank raised the money at the same reduced valuation as it did back in June 2020, which was much closer to its 2018 valuation of £1.25bn.

Monzo’s 40 per cent discount attracted a host of new investors to the funding round, including Novator, an investor in the likes of Deliveroo and Stripe, and TED Global, home of the TED Talk.

Existing investor Goodwater also participated in the round.

TS Anil, CEO of Monzo, told TechCrunch: “We’ve raised £125 million this year, achieved strong organic growth and are now nearing five million customers, all while becoming the most switched to bank in the U.K. and the top-rated for overall service.”

Monzo was the most switched-to account in the last quarter of 2019 but has since been replaced as the most switched-to bank by biggest rival Starling bank.

As well as revealing its most recent funding efforts, Monzo also released some of its updated figures to TechCrunch.

The digital bank is in arm’s reach of 5m customers, currently standing at over 4.8m according to its website, it has over 60,000 business users, after having added 10,000 since the middle of September. 

Monzo also reportedly has over 100,000 paying customers across both of its subscription packages, Monzo Plus and Monzo Premium.

After a rocky start to subscription services, Monzo relaunched its Monzo Plus package in July of this year and launched its new, more expensive and comprehensive package, Monzo Premium at the end of October 2020.

The digital bank has also seen a fair few executive departures this year, founding CEO Tom Blomfield, CTO Meri Williams and VP of marketing Tristan Thomas were among those who announced their departure.

Even more recently, Monzo’s chief risk officer Lisa Nowell departed the bank after just 14 months in the top job.