London-based startup bank Monzo has raised £71 million ($93 million) in their latest financing round. This fresh flow of funds has more than doubled its valuation since its last fundraising in February. Investors who participated were Stripe, Goodwater Capital, Passion Capital, Thrive Capital, Orange Digital Ventures, and renowned Silicon Valley investor Michael Moritz, who also backed Monzo through his charitable trusts.
Monzo is now valued at £280 million ($336 million). According to the company, they have more than 20,000 current account holders. Their total customers have increased by 300% since its February’s Series C funding round, and Monzo has doubled in size since the last funding. The company plans to use this one to expand, and expedite the roll-out current accounts, build its marketplace offering, and increase hiring efforts even more.
“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,” said CEO Tom Bloomfield.
“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.”
Monzo Bank, Ltd. was founded in 2015 by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon and Gary Dolman. The bank launched its pre-paid card in 2015; in April, they obtained a full banking license. In October, the bank announced it was ending unlimited free ATM withdrawals abroad, one of its more popular features. Now there will be a cap on overseas withdrawals of £200 per month, and a 3% charge on any further withdrawals.
“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,” said Goodwater Capital managing partner Chi-Hua Chien.
“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.”