Monzo is in discussions with a number of investors about raising at least £300m in new funding. The company is seeking at least £200m from new investors as part of talks aimed at strengthening its financial firepower amid a booming fintech sector, Sky News has learnt.
Approximately £200m is expected to be provided by new shareholders, with the remainder coming from existing backers of the company.
A £3bn valuation would reflect substantial growth in Monzo’s revenues, according to one source close to the process, and would be almost three times the £1.1bn valuation achieved in its last capital-raising earlier this year.
That may surprise industry peers given Monzo’s decision to withdraw its application for a full US banking licence earlier this year amid regulatory uncertainty.
In recent months, it has launched a service enabling customers to make card payments in instalments, in an attempt to gatecrash the ‘buy now, pay later’ revolution which has propelled the valuations of companies such as Klarna to stratospheric levels.
Even at a £3bn valuation, Monzo would still be worth far less than some fintech rivals, including Klarna and Revolut, which this year become the UK’s most valuable technology company.
FT Partners, a US-based advisory firm, is working with Monzo on the funding round.
Monzo declined to comment.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
