UK digital bank Monzo secures US$5b valuation with new funding

The news: UK digital bank, Monzo, has reached a USD5 billion ($7.7 billion) valuation as it completes an investment round ahead of its planned US expansion.

The numbers: Monzo confirmed that it has raised USD430 million from new and existing investors in a round led by CapitalG, Alphabet’s investment fund. Chinese VC firm HongShan, Tencent, and Passion Capital also participated in the round.

The context: The funding is earmarked for the bank’s second attempt to crack the US market, after US regulators told Monzo it would be unlikely to gain a banking licence on its first foray in 2021. Despite making a pre-tax loss of £116 million during 2023, the UK bank is expecting to turn a profit this year.

What they said: TS Anil, CEO of Monzo said: “We’ve built incredible momentum in the business over the past few years. With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers’ financial lives.”