Monzo has secured $430 million (£340 million) in new funding, boosting its valuation to $5 billion (£3.9 billion), as it aims to expand into the US market.
The UK-based digital bank, serving over nine million customers, saw its valuation rise from $4.5 billion (£3.6 billion) in 2021.
CapitalG, Alphabet’s growth fund and the parent company of Google, led this financing round. This fund has a history of supporting the expansion of companies such as Airbnb, Duolingo, and Stripe.
Monzo plans to use this influx of capital to accelerate its growth strategy, which includes entering new markets and introducing new products.
In 2023, the bank attracted approximately two million new customers and announced that it had achieved profitability a year earlier. Monzo is now on track to report its first-ever annual profit.
After withdrawing its application for a US banking license in 2021 due to expected disapproval, Monzo is now refocusing its efforts on penetrating the US market.
