I know it’s not Apples for Apples but Monzo raised at a £85m pre-money in early 2017 when they were at ~100k users. However, they were making almost no revenue (we know Freetrade is making some), in fact they were making a significant loss. That was also before they were a bank and over a year before they removed the waitlist.
It feels like this FT round should be something similar, perhaps even more as the business case looks arguably more solid than Monzo’s, but then what do I know? Where was that article about how to value a startup?
It will be interesting and I’ve no idea on these things. What I do know that a year on and Freetrade as an entity has to be worth considerable more. For me I wouldn’t sell my shares for anything, but I would expect 5-10x what I paid for them if I did - so guess I’m banking on the 100-150million mark myself.
Oh definitely it’ll be running at a loss, but my assumption is it’s not the ~£60 an account that Monzo was. There’s just not the same level of overhead as Monzo such as physical card shipping and ATM fees.
Also, there’s no messy migration to go through like Monzo had with prepaid to full bank account.
I appreciate that it’s a different segment within the wider Fintech space and that it was over a year ago, but the last WeSwap round raised around £1.1m against a pre money valuation of £28.2m. At that point I believe that they had around 400,000+ registered customers and were already showing quite high and rapidly growing transaction numbers.
Fair enough if £18m
You are indeed correct
