Tom Blomfield

Monzo CEO Tom Blomfield

Challenger bank Monzo closes £71m funding round

New investors Goodwater Capital, Michael Moritz through his charitable investment vehicles, and Stripe, join follow-on investors Passion Capital, Thrive Capital and Orange Digital Ventures.

Challenger bank Monzo has closed a £71m investment round as its customer base continues to grow at pace.

User numbers have increased by close to 300%, from 120,000 to 470,000, since the company’s last fundraise just nine months ago.

This latest round attracted strong interest from US investors, with investments from Goodwater Capital, Stripe, and Michael Moritz, through his charitable investment vehicles including the Crankstart Foundation.

In addition, Passion Capital, Thrive Capital and Orange Digital Ventures all also made follow-on investments.

Following the new financing, the company is valued at £280m, doubling its valuation after its last round in February 2017.

This latest funding will be used to bolster Monzo’s hiring efforts, as the team works hard to support its growing user base, roll-out current accounts, and build its marketplace offering.

Based in Monzo’s London HQ, the team now numbers 210, more than double the 80 people employed at the time of the last round.

CEO Tom Blomfield said: “This is an incredible endorsement of our strategy so far, and sets us up to continue the growth we’ve seen this year into 2018.

“We want to make it as easy as possible for people to manage and make the most of their money, to give people total visibility and control over all of their finances, and offer them their pick of the best products that the market has to offer.

“To help us achieve our ambition, we will continue to hire talented people, focus on building the best product, and bring Monzo to as many people as possible.

“We’re grateful and flattered to be joined by such high-calibre investors, who have unparalleled experience in growing and scaling globally-successful businesses.”

Chi-Hua Chien, managing partner of Goodwater Capital said: "Monzo's growth in the UK has been incredible, and the fact that it's been driven by word of mouth makes it even more exciting.

“Customers love Monzo because the company treats them right, solves their problems, and does so with total transparency.

“These values express themselves powerfully through Monzo's leadership team, world-class product and innovative services.

"Monzo is already making it as simple and seamless as possible for almost half a million people to manage their money, and we're looking forward to helping the team bring Monzo to millions more, in the UK and beyond.”

£1.5m of this round has also been reserved to allow existing crowdfunding investors to increase their investment amounts if they choose.

More than 8,000 people have invested in Monzo through crowdfunding, allowing the community to take a personal stake in their own bank.

In March last year, Monzo raised £1m in 96 seconds in what remains the quickest crowdfunding campaign in history.

The company also has further plans to launch a large crowdfunding campaign in 2018, to give as many people as possible the opportunity to invest.