The CEO of a UK challenger bank for the wealthy says it would be “foolish” to stop talking to investors in the current difficult fundraising environment, so it is undertaking back-to-back funding rounds.
Monument, which launched in 2021, just completed a £40 million-plus Series B funding round and its executives are now talking to investors about a £100 million Series C round.
The Series B round values Monument, which targets Britain’s wealthiest savers, entrepreneurs and property developers, at more than £150 million on a pre-money basis.
The back-to-back fundraises are due to the current difficult fundraising environment for investors and the desire to hit profit as quickly as possible, says Ian Rand, Monument CEO.
Its target is to hit a monthly profit in the second half of 2024.
"In all of our conversations with investors, we are very clear, the faster the more capital we raise, the faster we drive to profitability. So it is obviously sensible to keep the capital tap turned on.”
The Series B investment includes old and new investors, spearheaded by Dubai Investments, a UAE-based group, which has nearly doubled its stake to around 17 per cent in the London-based fintech.
Rand said that funds from Series B will be used for new products and investing in its Monument’s tech.
Monument has opened more than 10,000 accounts since its launch in 2021 with account balances averaging more than £60,000.
Rand said Monument does have some clients who are politically exposed persons (PEPs), which involved “some extra work” from the bank but it is “not material”.
Rand, the former CEO of Barclays Business Bank, took over the CEO role at Monument, which is targeting a three to five percent share of the £6 trillion UK savings market, at the start of 2022.
Lead image: Monument's leadership team. Photo: Uncredited.