Monzo gains £4bn valuation after fresh funding round

Monzo has raised 430 million US dollars (£340 million) in a fresh funding round which has lifted the value of the business, as it looks to boost its growth plans.

The UK digital bank, which has more than nine million customers, revealed that the latest fundraise values it at five billion US dollars (£3.9 billion).

It was last valued at 4.5 billion US dollars (£3.6 billion) in 2021.

The funding round was led by CapitalG, a growth fund led by global technology giant and the owner of Google, Alphabet. CapitalG has helped fund the growth plans of companies including Airbnb, Duolingo, and financial firm Stripe.

Monzo said it wants to use the cash to speed up its expansion, which could involve entering new markets and launching new 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

TS Anil, Monzo’s chief executive

About two million customers joined the bank in 2023 and it revealed it became profitable a year ago and expects to deliver its first ever annual profit.

It is set to target growth in the US market having decided to withdraw its application for a banking licence in the country in 2021, when it was told it was unlikely to be approved.