Challenger bank Monzo clinches £71m and hits £280m valuation
Startups 100-featured company plans to switch all of its 470,000 users over to a full current account by the end of 2017
Monzo, the Startups 100-featured digital challenger bank, has raised £71m from Goodwater Capital, Stripe, Passion Capital, and venture capitalist Michael Moritz.
Founded in 2015, London-based Monzo is a bank built for smartphones, allowing the user to receive instant spending notifications and categorised transactions. This helps them keep track of their spending and stay within their budget.
Users can ‘freeze’ and ‘unfreeze’ their card at the tap of a button if they think they’ve lost it and are able to quickly send payments through the app. To date, Monzo customers have spent more than £800m with their cards.
This latest finance has seen the company double its valuation to £280m since its last funding round in February and nearly quadruple its users from 120,000 to 470,000. Of those, 20,000 have signed up for a current account. Over the same period it has increased the size of its team from 80 to 120.
The funding will be used to roll out its current accounts, with plans to have all current users switched over by the end of the year and to start offering new customers full accounts in the new year.
Tom Blomfield, CEO of Monzo, commented: “This is an incredible endorsement of our strategy so far, and sets us up to continue the growth we’ve seen this year into 2018.
“To help us achieve our ambition, we will continue to hire talented people, focus on building the best product, and bring Monzo to as many people as possible.
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“We’re grateful and flattered to be joined by such high-calibre investors, who have unparalleled experience in growing and scaling globally-successful businesses.”
Chi-Hua Chien, Goodwater Capital managing partner, added: “Monzo’s growth in the UK has been incredible, and the fact that it’s been driven by word of mouth makes it even more exciting,”
“Customers love Monzo because the company treats them right, solves their problems, and does so with total transparency. These values express themselves powerfully through Monzo’s leadership team, world-class product and innovative services.”