Y Combinator, which has helped create companies such as Airbnb and Stripe, invested in Monzo through its Continuity Fund, which focuses on late-stage start-ups. Monzo is now valued at over GBP 2 billion, double the GBP 1 billion it was worth in its last funding round in October last year. The fintech firm has gained something of a following in Britain with its bright coral-colored bank cards and app-only checking accounts.
Monzo said it will use the extra capital to underpin its growth strategy as well as gain a foothold in the US. The start-up has announced plans to expand to Los Angeles and other major US cities. Other investors in the round include payments giant Stripe, venture capital firm Accel and Orange’s venture arm.
The company has been talking up its move toward a so-called marketplace model that sees it offer products from other providers, such as savings, as well as the ability for customers to save by switching from their energy provider within the app. Monzo isn’t the only fintech challenger to have gone down the marketplace route, with domestic rival Starling offering something similar.
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