Digital bank Monzo is reportedly in detailed talks to raise hundreds of millions of pounds in new funding at a sharply higher valuation despite a string of setbacks such as the curtailment of its expansion in the US.
According to Sky News, the bank is in talks with a number of investors about raising at least £300m. It was understood that around £200m will be provided by new shareholders, with the remainder coming from existing backers of the company.
Sky cited one source close to the process as saying that a £3bn valuation would reflect substantial growth in Monzo’s revenues, and would be almost three times the £1.1bn valuation achieved in its last capital raising earlier this year.
Even at a £3bn valuation, Monzo would still be worth far less than some fintech rivals such as Klarna and Revolut, Sky said.
US-based advisory firm FT Partners was said to be working with Monzo on the funding round.
