Monzo reportedly working on a £300m fundraise

Digital bank Monzo is reportedly working on a £300m+ funding round with a group of investment funds, according to Sky News.

The raise, which is expected to be finalised by the end of 2023, would value Monzo at more than £3.5bn according to the report.

This would place the digital bank at or above the £3.5bn valuation it achieved in 2021 when it last raised $475m in a round led by the Abu Dhabi Growth Fund.

Monzo has been recovering after a challenging few years when there was “material uncertainty” in the bank’s future in 2020 and then after the FCA investigated the bank for breaches of anti-money laundering and financial crime rules.

CEO TS Anil joined the business in 2021 to steady the ship, and in May 2023 the bank hit monthly profitability for the first time with an eye to turning its first full-year profit this financial year.

The bank has also been on a roll with new initiatives recently, including hiring a new US CEO to accelerate its growth in America, launching an investment offering for customers in partnership with BlackRock, and introducing a new call status feature to help customers identify fraudsters pretending to be calling from the bank.

Sky News also said this latest funding round is being viewed by insiders as the final round before Monzo hopes to unveil an initial public offering.

A Monzo spokesperson declined to comment to AltFi on the report.