Monzo’s valuation tops $5bn with $430m Alphabet-led funding round
Monzo has raised $430 million in a fresh funding round that also saw its valuation exceed the $5 billion mark for the first time.
Monzo raises $430m in fresh funding
The round was led by CapitalG, the independent growth fund of Google’s parent company Alphabet, with support from Google Ventures (GV) and Chinese venture capital firm HongShan Capital. Existing backers Passion Capital and Tencent also participated in the raise.
CapitalG’s leadership of the round appears to confirm previous speculation last November that Alphabet was on track to seize a major stake in Monzo at a valuation of above $4 billion.
Continuing the positive trajectory for the UK challenger, the latest round has now seen its valuation rise to around $5 billion. It last raised over $500 million in a 2021 funding round led by Abu Dhabi Growth Fund at a valuation of around $4.5 billion.
Monzo says it will apply the new capital to “accelerate” its expansion plans and “further fuel a rich product roadmap”, building on what it claims was “a year of record growth”.
Recent figures appear to support this statement, showing that the UK challenger accumulated 2 million new customers throughout 2023, alongside 400,000 business customers.
During this time, it managed to generate a revenue of approximately $450 million – a 130% year-on-year increase. However, it also reported a $147 million pre-tax loss, $3.8 million less than registered the year prior.
Regarding its “rich product roadmap”, this has most recently concerned a newfound interest in insurance products, led by Brolly founder Phoebe Chibuzo Hugh, and a renewed push into the US market under the remit of former Cash App head Conor Walsh, among other notable developments.
TS Anil, CEO of Monzo, says the new funding provides “the rocket fuel to go after our ambitions harder and faster…now we’ll scale to even greater heights and seize the huge opportunity ahead”.
