Digital bank Monzo is targeting a slight increase in its valuation to almost £4 billion as it completes a new funding round, following continuing to grow fast last year.
In what has previously been speculated as the final funding round before a potential IPO, the UK fintech is looking to raise up to £350 million at this valuation, according to a Financial Times report citing people familiar with the matter.
This would be an 11% increase from the £3.5 billion valuation when it raised $500 million two years ago from Abu Dhabi Growth Fund.
Two million new customers joined Monzo last year, the bank announced last week, taking the total above 9 million compared to 7.5 million at the end of May - almost half the size of NatWest.
It is the UK's largest digital bank (excluding Revolut, which offers many of the same functions but has not yet got its UK banking licence) and the country's seventh-biggest retail bank by customer numbers.
The most recent set of annual numbers from the company, last May, showed revenues grew 130% to £355.6 million in the year to the end of February 2023, though pre-tax losses of £116 million were recorded due to making extra provisions for potential bad loans.
Profitability had been reached in the period between February and May, the bank said, with annualised revenue topping £500 million last April.