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Monzo, a digital challenger bank, has raised millions more in investment in its largest funding round to date, more than doubling its current valuation.
The startup has collected £71m from various existing and new investors which values it at £280m amid a boom in funding for fintech in the United Kingdom.
Michael Moritz, a renowned Silicon Valley investor, has supported Monzo through his charitable trusts such as the Crankstart Foundation while Stripe, a US fintech firm, and Goodwater Capital, a US venture firm, have also become new supporters.
Orange Digital Ventures, Thrive Capital, and Passion Capital have invested more cash into the startup which in February, raised £22m back.
Monzo will also introduce a new round of crowdfunding for its existing 8,000 investors with a £1.5m target and a further, bigger round for new private investors is planned for 2018.
“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,” stated Tom Blomfield its co-founder and chief executive.
“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.”
The startup is closing in on half a million customers with over 20,000 currently signed up to its current account. It strives to get all switched over from the prepaid card which originally launched in 2015 by the end of 2017 and begins offering full accounts to new customers from 2018.
“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,” stated Chi-Hua Chien, Goodwater Capital managing partner.
“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.”