Insightful.
Was around Ā£13 per share last funding round. Not sure on total market cap, Iām sure a quick google would bring that up.
You clearly didnāt understand the premise. Monzo arenāt moving your actual pay day to a day earlier and hailing it as revolutionary. Theyāre releasing the money to you a day early.
So if your company pay you on 27th for example, Monzo can release the money into your account on the 26th, a day earlier than other banks would be able to.
The user has to make an active intervention to get paid early - so they only release the money if you choose to take it early.
The feature has been advertised as getting you salary early, but it actually works for any and all BACS payments you may receive.
The last valuation was $2bn when they had 2 million users (around May last year), as of this morning they have 4.1 million users. They were due to close a funding round around now I believe but I imagine the world collapsing around us all has put those plans on ice. My expectation prior to the collapse of the World 6 weeks ago was that the valuation would be around $4bn. A few negative comments above but lots of reasons to believe that Monzo will continue to perform well - most recommended brand in the UK, typical growth in normal times of around 40K users a week.
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You can use the following page on Monzoās site for the latest share price and valuation. Itās pretty nice for playing around with future valuations as well - https://options.monzo.com/
Pretty much what @Andrewpclark said although the last valuation was 2bn in Ā£ not $
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Thanks! Didnāt know about this.
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Wow, was not expecting this. Monzo have doubled their user base since the last fundraise so Iām normal times had expected the share price to double. It makes Revolutās recent value look crazy, timing wise they did well but their next round will surely show a massive drop in value.
Just checked. Theyāre still piling on 17,500 accounts a week during this period.
Is there a place to purchase shares in Monzo from previous investors?
From recollection the last raise valued the shares at Ā£15 each so this is quite a down valuation (c. Ā£10 a share)?
Monzo chief executive foregoing his salary for the next 12 months, furloughed some employees and closed a customer service office in the US to cut costs.
With the above and overall reduction in valuation, this really concerns me. I know your money is protected by the FSCS, but if theyāre only looking to raise Ā£70 - Ā£80 million as well, with such a small raise for their large monthly costs (salary etc.), they could very well be in a position where they face another down round again in 12 months. They will be very limited in what they can do with that money as well. They wonāt be able to hire a ton of engineers, expand into lots of markets or do another big tv campaign. Revolut will also most likely have its UK banking license by then.
I know weāve a lot of big fans here, but with Revolut having raised a whopping $500 million and signing up nearly a million accounts a month, they seem to be riding the waves (massively scaling, constantly releasing new features, rolling out banking operations, have $500 million in the bank), while it seems Monzo has no waves anymore or have one new feature every few weeks or months.
Starling announced over 150,000 business accounts and didnāt furlough employees in the end. They seem to be largely fine.
I think I will stick with Revolut more and more. This is a bad situation for Monzo seeing as N26 and Revolut didnāt go down in valuation. Revolut also has so many features that I do prefer them as my main account.
The last thing to keep in mind is how will Monzo ever do a huge $500 million raise at that reduced valuation. This is a big blow to me.
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I doubt it. They have over 12 million accounts now, seem to be scaling at nearly 1 million new accounts a month and are rolling out banking operations across Europe and seeking a UK banking license. Theyāre also planning on hitting profitability by the end of the year. They might not need to raise again, and if they do, it could be in several years when they have tens of millions of customers when Covid-19 is hopefully a distant memory.
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Sorry to see as a user and crowdfunding investor. User growth really slowed down.
I donāt think the value of my shares is that gravely expected, but have to sit down and calculate. I hope they will recover fast.
It makes me appreciate the opportunity to invest in Freetrade. Diversification.
I think once they get that a lot of people will move their salary and whole accounts with them. They will slowly transition from a ātravel fx accountā to full accounts and people will love to have all the functionalities in one. Stocks, currency exchange, plus other perks.
As a crowdcube investor in Monzo Iām a bit disappointed in the lack of direction of Monzo. They were very good as disruptors and forced traditional banks to change and now most traditional banks provide the same services (one way or another).
Monzo needs to diversify their offering, especially in a climate where interest rates are very low. People are interested in investing more now, thereās a shift. And once they have an account they can do everything from a single space, they wonāt need anything else.
I personally think once Revolut gets their banking licence, Monzo better watch out and adapt, quickly.
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Freetrade integration would be a good start.
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Monzo engagement on their forum has really tailed off unfortunately and a lot less interaction from Monzo staff on there.
Monzo mentioned in their investor day last year that they didnāt plan to be profitable in the next few years as they would keep investing in their business instead but I wonder if various large investors are trying to change that approach and get to profitability quicker and not just keep absorbing more funding without a clear end goalā¦?
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In my opinion the reason Monzo have made so little progress on the product recently is because of their tech strategy - in particular the use of microservices. They have over 1500 microservices (https://monzo.com/blog/we-built-network-isolation-for-1-500-services) and according to Linkedin about 200 software developers. They have almost 8 services per employee. Speaking from experience, that will massively slow down development speed, as you have an exponential increase in complexity the more services you have. Number of services > number of employees is a red flag for me.
Quote from that blog post:
The sheer number of services and connections made this project really challenging
Iād love to read a transparent blog post or announcement from Monzoās CEO about whatās happening at the company with this. I preface this by saying he may very well be writing one, and I hope he will.
Whenever things are going well for Monzo, or poorly for their competitors (such as N26 exiting the UK), he is doing interviews, posting on social media and taking jabs at his competition.
When things are going poorly or there is a negative article, he seems to completely disappear and then come back in a few weeks when there is a positive announcement. I want to see a leader stand up, be seen and heard during the difficult times. Thatās real leadership to me. Leadership isnāt just about being present when things are going well, itās about being present and vocal during the tough times as well.
I invested in Monzoās crowdfund along with thousands, if not tens of thousands others. I think we deserve some transparency during the tough times as well. I want to see Monzoās CEO stand up tall and be clear and transparent around whatās happening here. I am not saying he wonāt, I am hoping he will.
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