Monzo to raise GBP 300 mln, at GBP 3 bln valuation

Approximately GBP 200 million is expected to be provided by new shareholders, with the remainder coming from existing backers of the company. A GBP 3 billion valuation would reflect substantial growth in Monzo's revenues, according to one source close to the process, and would be almost three times the GBP 1.1 billion valuation achieved in its last capital-raising earlier in 2021.

That may surprise industry peers given Monzo's decision to withdraw its application for a full US banking license earlier in 2021 amid regulatory uncertainty. In recent months, it has launched a service enabling customers to make card payments in instalments. FT Partners, a US-based advisory firm, is working with Monzo on the funding round.