British neobank Monzo announced on Wednesday that it has raised another $190 million, bringing the total amount raised this year to $610 million. New investors in this round include Hedosophia, CapitalG, and the Singaporean sovereign wealth fund GIC. This latest funding round values Monzo at around $5.2 billion, up from $5 billion in March.
Monzo’s CEO, TS Anil, stated that the company plans to use the funds to develop new products and expand internationally. The neobank has recently ventured into profitability and is looking to enhance profits through diversification into areas such as lending and savings. Monzo is also gearing up to launch its first pensions product within the next six to nine months.
In terms of global expansion, Monzo has restarted its U.S. expansion efforts and is focused on ensuring the quality of its product in the U.S. market. The company is also considering European expansion but has not yet set a timeline for this move. Additionally, Monzo is planning to enter the mortgage market in the future, further intensifying its competition with traditional retail banks.
Anil emphasized that while Monzo aims to become a public company in the future, it is currently prioritizing scaling the business before considering an IPO.
British neobank Monzo has raised an additional $190 million, bringing its total funding for the year to $610 million. The funding was secured from new investors including Hedosophia, CapitalG, and Singaporean sovereign wealth fund GIC. This latest round values Monzo at around $5.2 billion, an increase from the $5 billion valuation it achieved earlier this year. Monzo plans to use the funds to develop new products, expand internationally, and increase profitability through diversification into lending and savings, with plans to launch its first pensions product. The company, which has over 9 million retail customers in the U.K. and 400,000 business customers, also made its first move into investments last year. Monzo is looking to expand globally, with a focus on the U.S. market where it is working to ensure its product can compete with major incumbents like JPMorgan and Citibank. The company is also considering European expansion in the future. In the long term, Monzo is planning to launch a mortgages product to compete more aggressively with U.K. retail banks in the lending space. An IPO is not on the immediate horizon for Monzo, as the CEO is focused on growing the company at scale before considering going public.
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