By Oliver Smith on Wednesday 27 October 2021
A valuation of between £3bn and £4bn is anticipated, marking a significant jump for the neobank.
Despite a tricky year that has seen its losses widen, US banking licence plans shelved and an investigation into its financial crime practices launched by the FCA, Monzo is said to be working on a fresh multi-million-pound funding round.
The cash would be raised at a valuation of £3bn, almost three times what it last raised funding at in June 2020, when the bank raised £125m at a £1.1bn valuation.
This so-called ‘down round was at a lower price tag than its 2019 funding when the bank was valued at £2bn, largely due to Monzo’s poor positioning at the start of the Covid pandemic with its overreliance on interchange fees from card payments.
Business Insider also reported that a funding round is in progress, although it quoted a higher £400m raise at a valuation of up to £4bn.
The bank also last month launched its first buy now, pay later product, with the launch of Monzo Flex.
From the bank’s 2021 results we learned that in the US Monzo had just 22 full-time employees and around 4,000 customers, costing the bank around £543,000.
Monzo declined to comment.