App-only bank Monzo attracts £71m as user numbers soar

Ben Heathcote

In App Deals

November 9, 2017

Monzo, the digital-only challenger bank, has closed a £71 million investment round. The company’s customer base has grown by almost 300% to 470,000 since its last fundraise just nine months ago.

This latest round attracted strong interest from US investors, with investments from Goodwater Capital, Stripe, and Michael Moritz, through his charitable investment vehicles including the Crankstart Foundation. Existing backers Passion Capital, Thrive Capital and Orange Digital Ventures all also made follow-on investments.

The app-only UK bank is now valued at £280 million, doubling its valuation after its last round in February 2017. £1.5 million of this round has also been reserved to allow Monzo’s existing 8,000 crowdfunding investors to increase their investment amounts if they choose.

In March last year, Monzo raised £1 million in 96 seconds in what remains the quickest crowdfunding campaign in history. The company also has further plans to launch a large crowdfunding campaign in 2018.

Tom Blomfield, CEO, said:

“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. We want to make it as easy as possible for people to manage and make the most of their money, to give people total visibility and control over all of their finances, and offer them their pick of the best products that the market has to offer.

“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. We’re grateful and flattered to be joined by such high-calibre investors, who have unparalleled experience in growing and scaling globally-successful businesses.”

The funding will be used to bolster Monzo’s hiring efforts, roll out current accounts and build its marketplace offering. The London-headquartered bank now has a team of 210, more than double the 80 people employed at the time of the last round.