Monzo achieves $5.9bn valuation with employee share sale
UK-based digital challenger Monzo has achieved a valuation of $5.9 billion after launching a secondary share sale.
Monzo achieves $5.9 million valuation
The move was supported by the bank’s existing backers, including Singapore’s sovereign wealth fund GIC and StepStone Group, which have purchased additional shares in Monzo.
Monzo says the sale has provided additional liquidity to employees while enabling investors to buy into its equity.
The development comes after the challenger reported its first annual profit in June, which marked a £15.4 million gain for the fiscal year ending 31 March, compared to a £116 million loss the year prior.
Monzo has raised substantial funding this year to fuel its growth, including a $430 million round led by CapitalG in March, as well as a further $190 million round in May, which at the time brought its post-money valuation to over $5.2 billion.
Monzo has now raised close to $1.5 billion since its founding in 2015, and claims to serve around 10 million customers as the UK’s seventh-largest bank.
Looking ahead, the bank is planning to expand its footprint into Europe, via a gateway in Ireland, and further its presence in the US.
In August, UK-based neobank Revolut took a similar approach to Monzo, reaching a $45 billion valuation through a secondary share sale that unlocked $500 million in liquidity for employees.
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