It’s a fantastic update. Really good news for investors. They had a pretty bad period a few years ago and seemed to have turned the ship around. It gives me hope for Freetrade.
8 Likes
It will happen!
2 Likes
4 Likes
Monzo says that next offering is share trading??
i think their focus is lending at the moment
Solid update by Monzo, though loan loss provisions seem excessive, even within context of rapid loan book growth…
Understand almost totally unlikely, but this would be such a killer play for Freetrade, offering a b2b solution to Monzo opening up another rev. stream by working with what I consider to be a relatively well aligned business. However, I suspect given Monzo’s robust capital position, they’ll try to build in house…which presents itself as an additional potential threat if Monzo start aggressively targeting sector talent…
6 Likes
I think B2B white labelling was previously on FT’s roadmap, I’m not sure if that’s still the case or whether it was cut back but I wouldn’t completely rule it out.
However like you say Monzo is well-capitalized and regrettably I don’t think FT has the depth of features to dissuade Monzo from just building themselves.
5 Likes
1 Like
1 Like
Nice to see Monzo offering investments. Looks like it’s nice and simple to use too. Instead of getting notifications on frothy Arm share prices you’ll just have a dashboard to choose risk appetite.
Also, looks like there won’t be crazy FX fees (well no other currency mentioned) and it’s got a simple monthly percentage fee so that won’t put anyone off starting out with small sums. However, FT might be better if you can ignore the money losing stock notifications and have a large GBP only account.
7 Likes
5$ billion valuation today
4 Likes
It shows with good leadership and guidance it’s possible to bring turnaround and big value to investors!
I hope freedrade are able to follow footsteps of Monzo.
5 Likes
2 Likes
Monzo, the fintech which has become one of Britain’s biggest consumer banking groups, is this weekend putting the finishing touches to an expanded fundraising involving one of the world’s best-known technology investors.
Sky News has learnt that Monzo has agreed terms with Hedosophia, an early backer of Airbnb and Uber, for it to become a shareholder in the bank.
City sources said on Sunday that Monzo could announce as soon as this week that Hedosophia and Singapore’s Government Investment Corporation (GIC) were participating in an overall fundraising worth close to £500m.
The larger-than-expected round makes it one of the largest ever achieved by a British tech company.
One insider said that GIC was investing over £50m, with Hedosophia also committing tens of millions of pounds.
Hedosophia, which declined to comment, is an early-growth investor founded by Ian Osborne, who has backed some of the world’s biggest tech names over the last 15 years.
Among the British tech companies it has backed include Wise, the London-listed money transfer business, and Marshmallow, the insurance group.
Monzo’s expanded fundraising is likely to mean that it will not require any further capital if it decides, as expected, to go public in the next couple of years.
The digital bank, which has millions of customers in Britain, recently secured a valuation in excess of £4bn after concluding the initial phase of its funding round.
Founded in 2015, it is now profitable and has diversified into investments and instant access savings accounts.
It now ranks as the seventh-biggest bank in Britain by number of customers.
The new fundraising was led by Capital G, the independent growth fund of Alphabet, Google’s parent company.
The company is among a new generation of banks which have emerged since the last financial crisis and begun to accumulate a significant share of the UK retail banking market.
Rivals include Starling Bank, which recently named a permanent chief executive to replace its founder, Anne Boden.
Revolut, which was valued at $33bn (£26.5bn) in a funding round in 2021, has yet to receive a UK banking licence despite more than a year of talks with regulators.
Monzo has recovered spectacularly from a difficult period two years ago, when it emerged that the City watchdog was investigating it for potential breaches of anti-money laundering and financial crime rules.
It has historically been loss-making, in common with most start-ups, reporting a loss of £116m in the year to the end of February, but is expected to be profitable this year - a major milestone for a standalone digital bank.
Monzo recently revamped its corporate structure as it pursues an international expansion strategy that will serve as the prelude to a stock market listing.
Monzo Bank Holding Group was established to avoid the company facing punitive capital treatment by British regulators as it launches in new overseas markets.
Existing Monzo investors include the Chinese group Tencent, Passion Capital, Accel and General Catalyst.
Monzo is run by TS Anil, its chief executive, and chaired by Gary Hoffman, one of Britain’s most prominent bank executives.
On Sunday, Monzo declined to comment.
3 Likes
what they are going to do with the money? they are a profitable
They are going to need plenty to facilitate growth in the USA and the IPO in 2025
1 Like