Monzo, one of the “Big 3” U.K. challenger banks aka FinTechs besides Revolut and Starling Bank with more than 4.8 million customers just closed another £60 million in funding, priced the same as its last round in June when it raised £65. The new investor valued Monzo at around £1.2 billion. It was a down round, actually. The bank received a 40% hit in its valuation compared to its June 2019-round which gave it a valuation of £2 billion.
So far, Monzo has raised £125 million in funding amid the COVID-19 pandemic. The new funding comes from new investors including Novator, Kaiser, and TED Global, as well as existing investor Goodwater. In the previous fundings Y Combinator, General Catalyst, Accel, Passion, Thrive, and Stripe have been investing in Monzo.
According to TechCrunch technology journalist Steve O’Hear the down round is “likely a reflection of the current funding climate amidst the coronavirus crisis, with Monzo having to raise a bridge round at quite possibly the worst time.”