Monzo seeks £100 million investment at £2 billion valuation
Digital bank Monzo is close to securing an additional £100 million in funding from a large US investor.
The Guardian reports that the new tranche of cash would bring the challenger bank’s valuation close to £2 billion.
The investment would also create a major win for some of Monzo’s own customers, thousands of whom took part in a crowdfunding campaign run by the bank.
The campaign saw 36,000 small investors back the startup. At that point shares were valued at around £7.70 each, but one investor posting on the Monzo forums suggests that that figure could rise to as much as £14 at the bank’s new valuation.
The crowdfunding campaign was controversial at the time, thanks to the bank’s decision to allow customers to go overdrawn specifically in order to buy Monzo shares.
But even if the 36,000 crowdfunding participants saw their shares rise, it would be a paper gain only, as the shares are not currently tradeable.
Monzo is the most prominent of the UK’s challenger banks. It currently boasts some 1.2 million customers.