Monzo reportedly eyeing £50m top-up to its Series G 

By Aisling Finn on Monday 8 February 2021

Digital Banking

The latest raise will take Monzo’s total raised during the pandemic to £175m.

Monzo reportedly eyeing £50m top-up to its Series G 
Image source: TS Anil/Monzo

Digital banking darling Monzo is reportedly raising a £50m extension for its Series G from both new and existing investors, taking the total raised during the pandemic to £175m.

According to Business Insider, Monzo’s new investor is San Francisco-based VC Octahedron Capital, which, in the last month alone, participated in AI-focussed fintech Databricks’ $1bn Series G and Indian fintech Udaan’s $280m fundraise. 

The extension has also reportedly been raised at the same $1.25bn price tag as the previous raises in the Series G, and a 40 per cent discount from its previous Series F raise. 

Reports of Monzo’s fresh capital comes just weeks after it was announced that Tom Blomfield would be leaving the bank he helped start.

Blomfield stepped down from his role as CEO and into the role of President in May 2020, with US CEO TS Anil moving into the position of Group CEO as a result. 

The pandemic has hit Monzo hard, with the bank being one of the first major fintechs to make redundancies in the Spring of last year and its annual results “cast material uncertainty” over the bank’s future.

In January, Katherine Long, a banking analyst at GlobalData claimed that Monzo is “struggling” to avoid the same fate as recently-shuttered Australian digital bank Xinja following its rocky 2020.

Despite the knocks, Monzo has reattempted the launch of its paid accounts, seemingly with more success the second time around, drawing in 50,000 Monzo Plus users after just one month, with the figure now nearer 100,000 Plus and Premium subscribers according to the bank.

Monzo also amassed 50,000 SME customers in six months after finally launching the hotly-anticipated business account back in March 2020, just before the first national lockdown. 

Since the middle of September, the digital bank added 20,000 business customers, taking its total to over 70,000 SME users. 

The digital bank is in arm’s reach of 5m customers, currently standing at over 4.9m according to its website.

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