Monzo Neobank Plans to Raise Another £50-100 Mln in 2020

The Monzo neobank plans to raise an additional £50-100 million in the next round of financing in 2020, according to the Financial Times.

As reported by FT, Monzo has been negotiating with current and potential investors since the investment round in June, during which the neobank managed to raise $143 million. This year, the startup launched by Tom BLOMFIELD launched almost five years ago has grown in value from $1.25 to $2.5 billion. According to Monzo, more than 3 million people are already using the services of the neobank, and over the 5 years of operation Monzo has processed payments of 18 billion pounds.

In June, managers of the project announced that Monzo’s losses would increase over the course of the year — the neobank launched a campaign aimed at increasing the number of customers. According to the financial report for 2019, the loss of the neobank amounted to £50.7 million, while in the previous period this indicator was at the level of 33 million. The same report says that the proportion of customers receiving salaries via Monzo by the end February rose to 30% compared with 12% a year earlier. This year Monzo also launched its services in the USA, working in test mode.

Image courtesy of Neobankmarket