Monzo has raised £85m in a recent series E funding round with Venture Capital firms General Catalyst and Accel Partners leading the investments. The Bank’s pre-existing backers also participated; these include firms such as Passion Capital, Goodwater, Thrive Capital, Orange Digital Ventures and Stripe. This financing has allowed Monzo to reach the landmark valuation of £1bn, and subsequently making the Bank the latest UK Fintech Unicorn, following in the steps of its London based rival Revolut.
The £85m is to facilitate the launch of new products such as saving accounts and cash deposits in partnership with other companies, which the Bank aims to have up and running in 2 months. Monzo has also promulgated their plans to provide fixed-term loans in the near future with investment products not being far off either. Tom Blomfield, Monzo CEO has planned a doubling of the company´s headcount in order to further develop the product line. Since gaining a full Banking Liscence last year, Monzo has amassed over 1 million current accounts, and aims to reach the 1.5 million mark by the end of 2018. The expansion into the lending and investment markets represent the Banks hopes to attract older and more affluent customers and to become one of the top 5 Banks in the UK.