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British digital bank Monzo on Tuesday announced the completion of a $430 million financing round to support its re-entry into the US market.
This latest round of funding is led by CapitalG, the independent investment arm of Google parent company Alphabet. CapitalG was joined in the competition by Chinese venture capital firm Hongshan, which recently spun off from Sequoia Capital, as well as Monzo investors Tencent and Passion Capital.
Monzo, described as one of the UK’s leading free-to-play banks, has announced its intention to raise new capital to accelerate its expansion plans. The company’s CEO, TS Anil, expressed confidence that the financing will provide Monzo with the necessary resources to enter the US market, after facing negative management in its previous ventures.
Anıl emphasized the importance of the support of international businessmen in helping Monzo achieve its goals of making the bank a base for financial market customers with greater strength.
The financial report follows a period of significant growth for Monzo in 2023. The new bank was profitable in the first two months of the year, with profitability up 88% to 214.5 million pounds ($272 million). 114 million lira by 2022.
The bulk of the new revenue will be used to restart Monzo’s services in the United States. Monzo had previously attempted to establish a presence in the United States in 2019 but was hampered by regulatory issues, prompting a change in strategy to re-enter the market through partnerships, bypassing the need for a full business license.
After relaunching in the US, Monzo appointed former Block cash app executive Conor Walsh as US CEO in October 2023, signaling the company’s commitment to its US business.
Also, Monzo has expanded its offering and expanded into products with the launch of Capital Pot in 2023; It allowed customers to invest their money with different risks in various funds managed by BlackRock.
Monzo now has over 9 million sellers in the UK and its customer base is growing rapidly, adding another 2 million customers in 2023 alone. Additionally, the bank serves 400,000 banking customers, demonstrating its growth and influence in the financial sector.