Monzo raises £340 million in fresh funding round in major boost to growth plans

05 March 2024 , 14:48

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Online bank Monzo, which has over nine million customers, is now valued at £3.9 billion (Image: PA Media)

Monzo has raised £340 million in a new funding round as it looks to grow the online bank.

The bank, which has over nine million customers, says this money means it is now worth £3.9 billion. Monzo was valued at £3.6 billion in 2021. The investment came from CapitalG, which is part of the same company that owns Google, Alphabet. CapitalG has helped other companies like Airbnb and Duolingo grow too.

Monzo plans to use this money to grow even faster. They might go into new markets anbd launch new products. In 2023, two million more customers joined Monzo, and the bank started making money for the first time last year. It's looking forward to its first full year of profits.

Monzo also wants to expand in America. They tried to get their own banking licence there in 2021 but were told it probably wouldn't happen. So, they work with another partner bank in the US and have a boss there to head up the US operation.. American customers can share accounts and put money into "Pots" to keep track of it.

The chief executive, TS Anil, told the Financial Times that they have "earned the right to dream bigger and invest in the US". He also suggested they might grow in other parts of Europe to attract customers who aren't happy with their current banks.

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The bank said that Google Ventures and HongShan Capital from China are some of the new investors putting money into the business, along with supporters like Passion Capital and Tencent who have helped before. Mr Anil said: "We've built incredible momentum in the business over the past few years which has led to us reaching more than nine million customers, turning profitable and launching even more ground-breaking products."

"With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers' financial lives."

Lawrence Matheson