This saw Monzo valued by private investors at around GBP 1.2 billion, marked by industry observers as a down round, according to Tech Crunch. The new funding comes from new backers, including Deliveroo and Stripe investor Novator, Kaiser and TED Global, as well as existing investor Goodwater. They join the likes of Y Combinator, General Catalyst, Accel, Passion, Thrive and Stripe, which all re-invested earlier in 2020.
Meanwhile, it has been a challenging time for Monzo, as it has had to weather the coronavirus crisis and resulting economic downturn. This included utilising the UK furlough scheme and subsequently making around 80 employees redundant in the summer of 2020. In addition, there was a round of US layoffs and the closing of its Las Vegas-based customer support office.
The crisis also resulted in Monzo seeing customer card spend reduce at home and abroad, meaning it is generating less revenue from interchange fees.
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