UK challenger bank Monzo nabs another $190M as US expansion beckons

Monzo has raised another £150 million ($190 million), as the challenger bank looks to expand its presence internationally — particularly in the U.S.
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Monzo has raised another £150 million ($190 million), as the challenger bank looks to expand its presence internationally — particularly in the U.S.

The new round comes just two months after Monzo raised £340 million ($425 million), meaning the London-based company has now raised north of $610 million in 2024, and $1.5 billion since its inception nine years ago.

The first tranche of the Series I round saw Alphabet’s CapitalG and Google’s GV make a rare co-investment, alongside notable backers including HongShan Capital (formerly Sequoia Capital China), Passion Capital and Tencent. This extension saw existing investors such as CapitalG throwing more cash into the pot, alongside new backer Hedosophia, which had previously backed Monzo rival, Wise.

In March, Monzo said its pre-money valuation was £3.6 billion ($4.6 billion), translating to a post-money valuation of £4 billion ($5 billion). Now, the company says its post-money figure is £4.1 billion ($5.2 billion), meaning not much has changed in the past two months.

While Monzo is mostly known in its domestic U.K. market, it has been trying to crack the U.S. for some years. But without a banking license of its own, it has been operating as a mobile banking app in partnership with Ohio’s Sutton Bank since early 2022. The company appointed a new CEO for its U.S. operations back in October, hiring head of global product for Block’s Cash App, Conor Walsh, to lead Stateside.

In the U.K., Monzo now claims more than 9 million retail customers and 400,000 clients in the business realm. Its revenues doubled in the most recent financial year, and with a veritable war-chest at its disposal, the company is well-financed to try and emulate some of this success across the pond.

“The huge interest we see from global investors is testament to the momentum and strength of our business model and the commitment of our teams, who put our customers at the heart of everything we do,” Monzo CEO, TS Anil, said in a statement issued to TechCrunch. “With even more rocketfuel for our ambitions and exciting products in the pipeline, there’s no doubt in my mind that the best of Monzo is yet to come.”