London-based disruptor bank Monzo has secured a $5 billion (£3.95 billion) valuation in a funding round led by Google parent Alphabet’s venture capital wing CapitalG.
Sequoia Capital spinoff HongShan and existing backers Tencent and Passion Capital contributed to the $430 million funding round, according to a report by the Financial Times.
Monzo chief executive TS Anil told the FT that the funding will go toward its plans for US expansion, following an unsuccessful attempt in 2021.
Monzo was valued at £3.5 billion at that time after raising funds from the Abu Dhabi Growth Fund.
Two million new customers joined Monzo in 2023, the neobank stated in February, taking the total above nine million compared to 7.5 million at the end of May 2023- almost half the size of NatWest.
Last July, Monzo signalled an expansion into Europe with discussions of a merger with Denmark-based Lunar, but those discussions have since been scrapped.
Regarding the prospect of a public market debut, Anil said it was “too early” to discuss the idea.
Monzo was still a loss-maker in 2023, though Anil expressed hopes of a pivot to profitability in the current financial year.