Digital bank Monzo has raised £85 million in a Series E funding round, led by General Catalyst, supported by Accel and the company's existing investors, valuing the company at more than £1 billion (US$1.27 billion), making it the UK's newest tech unicorn. (See The UK Starts & Grows Most of Europe's Tech Unicorns.)
The fast-growing bank reached the significant milestone of 1 million customers last month, and is now adding 100,000 new users every month, 30% of these in London. The company already employs 450 people in its headquarters near Moorgate in London, but plans to more than double this to about 1,000 people by the end of next year. (See Monzo Signs Up 1M Customers for Its Next-Gen Current Account.)
Monzo is also planning to launch a new crowdfunding round later this year. Back in 2016, it raised £1 million in 96 seconds on crowdfunding platform Crowdcube, in what still stands as a record for crowdfunding. The blog post on the upcoming round says it will be "much larger" than previous crowdfunding campaigns from Monzo, which raised £2.5 million ($3.2 million) in 2017 with more than £12 million ($15.3 million) pledged overall.
Monzo's ads can now be seen on the London Underground, which should increase the bank's visibility in the UK capital. (Image: Monzo)
Monzo co-founder and CEO Tom Blomfield commented: "We started Monzo because we wanted to make a positive difference to people's financial lives. It's incredible that more than 1 million people are now using Monzo and a testament to all the hard work that's gone into building the company over the last three and a half years. While we've come a long way, we feel we're still very much at the start of the journey. I'm really excited to be working with two new world-class investors to help bring Monzo to millions more people."
Company CEO Nik Storonsky is convinced that his company is an acquisition target because of its ability to greatly speed up the time it takes to detect credit card theft and other types of financial fraud.