London-headquartered challenger bank Monzo has raised $144 million (£113m) in funding. The round, led by US accelerator Y Combinator, doubles the company’s valuation since its last funding round to $2.5 billion.
The latest investment has been announced just weeks after Monzo confirmed plans to start rolling out in the US. The digital bank currently boasts more than two million users, with over 200,000 new people joining in May alone.
The company wrote in a blog post:
“There’s a lot going on! And with this new round of funding, we’re confident that we’re moving in the right direction on our mission to make money work for everyone.”
Monzo plans to use the funds for its transatlantic launch and new marketing, including a TV ad campaign designed to increase the diversity of customer base.
The start-up has selected Los Angeles as its first US headquarters, with plans to expand further as it secures a foothold with in-person events.