Challenger bank Monzo valued at £50 million

Challenger bank Monzo valued at £50 million

Mobile-only challenger bank Monzo has raised £4.8 million in an “interim” funding round led by Passion Capital. The bank is now valued at £50 million (in February this year it was valued at £30 million).

So far, the bank has raised £12.8 million.

Monzo (formerly Mondo) received its banking licence in August. It hopes to raise £15-20 million in early 2017 (partly through crowdfunding) and open for business later that year.

It has already issued 50,000 prepaid cards and claims a waiting list of 250,000. “We launched these Monzo accounts as a beta trial, ahead of our full current accounts available next year,” says Tom Blomfield, co-founder and CEO of Monzo.

“For a pilot programme, the response has been incredible – we’ve seen more than £45 million spent by 50,000 people in over 150 countries. What’s more, over 60% of the Beta accounts are being used actively.”

The bank also launched an Android version of its app in September, which it says now has 8,000 users.

It is a proponent of modelling products around user experience (UX).

Who else is active on the lively UK challenger bank scene? Read our latest compilation of “UK challenger banks: who’s who (and what’s their tech)”.