Monzo raises more than $400m to fuel further expansion on the back of record growth

Monzo, the UK’s largest digital bank with more than 9 million customers, today announces that it has raised $430 million (£340 million) in a funding round that will boost its expansion plans.

Led by CapitalG, Alphabet’s renowned independent growth fund that has backed companies including Stripe and Airbnb, the round also sees participation from leading global tech investors including GV (Google Ventures) and HSG (HongShan Capital), as well as existing backers including Passion Capital and Tencent. The round values Monzo at an increased post-money valuation of $5 billion (£4 billion).

The new capital will be used to accelerate Monzo’s expansion plans following a year of record growth that saw the company move into profitability, attract millions more customers and launch a range of new products. Funds will further fuel a rich product roadmap as the business continues to make strides on its ambition to build the one app customers turn to to manage their entire financial lives.

The round follows a period of record growth for Monzo in which it has seen:

• Rapid customer growth: Monzo now has more than 9 million retail customers, with 2 million joining in 2023 alone, as well as 400,000 business customers
• Substantial revenue growth: A diversification strategy is driving high quality revenue growth – with revenues more than doubling in the last financial year
• Profitability: The company reported its move into profitability in March 2023 – Successful product launches: The launch of Instant Access Savings and Monzo

Investments in 2023 came alongside other features including Cashback, Mortgage Tracker and the industry-first Call Status fraud prevention tool

TS Anil, CEO of Monzo said: “We’ve built incredible momentum in the business over the past few years which has led to us reaching more than 9 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. Each milestone we’ve reached to this point has given us more strength and speed to make strides towards our mission – now we’ll scale to even greater heights and seize the huge opportunity ahead.”

Gene Frantz, General Partner at CapitalG said: “We’re thrilled to lead this investment round in Monzo. In an industry long rife with stagnation and uninspired customer service, Monzo has emerged as the innovative, customer-centric bank that consumers have long craved. Led by CEO TS Anil, Monzo is an exceptional company combining the best of banking and technology. We’re excited to support Monzo’s journey to provide customers in the UK and beyond with unique and inspiring digital experiences that they can depend on for all of their financial needs.”