Monzo, UK's largest digital bank, raises £340M for expansion

Today Monzo, the UK's largest digital bank, announced that it has raised £340 million in a funding round to boost its expansion plans. 

Monzo was founded in 2015 and now serves more than 9 million customers, making it the largest digital bank in the UK and the 7th largest UK bank by customer numbers.

The company reported profitability in March 2023. In 2023, it launched Instant Access Savings and Monzo Investments alongside other features, including Cashback, Mortgage Tracker, and the industry-first Call Status fraud prevention tool.

Led by CapitalG, the round also sees participation from leading global tech investors, including GV (Google Ventures) and HSG (HongShan Capital), as well as existing backers, including Passion Capital and Tencent. The round values Monzo at an increased post-money valuation of £4 billion. 

According to TS Anil, CEO of Monzo: 

"We've built incredible momentum in the business over the past few years, leading to us reaching more than 9 million customers, turning profitable and launching even more ground-breaking 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.

Each milestone we've reached to this point has given us more strength and speed to make strides towards our mission - now we'll scale to even greater heights and seize the huge opportunity ahead." 

Gene Frantz, General Partner at CapitalG said: 

"We're thrilled to lead this investment round in Monzo. In an industry long rife with stagnation and uninspired customer service, Monzo has emerged as the innovative, customer-centric bank consumers have long craved. 

Led by CEO TS Anil, Monzo is an exceptional company combining the best of banking and technology. We're excited to support Monzo's journey to provide customers in the UK and beyond with unique and inspiring digital experiences that they can depend on for all of their financial needs." 

The new capital will accelerate Monzo's expansion plans following a year of record growth that saw the company move into profitability, attract millions more customers, and launch a range of new products. 

Lead image: Monzo. Photo: uncredited.