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Monzo set to finalise fundraising with major tech investor

written by Bella Palmer
stock-investors

Monzo is expected to launch a blockbuster IPO in London or New York in the coming years and the latest round of fundraising will likely mean it doesn’t need any further capital before a possible floatation

Digital bank Monzo is in the process of finalising a new expanded fundraising with major tech investor Hedosophia, as per reports, in one of the biggest fundraising rounds achieved by a British tech company.

Citing City sources, Sky News reported Hedosophia and Singapore’s Government Investment Corporation were participating in a fundraising round worth close to £500 million.

Sky reported that Hedosophia, an early backer of Airbnb and Uber as well as Wise in the UK, could commit tens of billions in the fundraising round, becoming a shareholder in the bank. An official announcement could come as soon as next week, according to the report.

Monzo is expected to launch a blockbuster initial public offering in London or New York in the coming years and the latest round of fundraising will likely mean it doesn’t need any further capital before a possible floatation.

Boss TS Anil has indicated that the company will float at some point but has remained tight-lipped about the timing or location, saying last month that it was “too early” to discuss.

Monzo was founded in 2015 and has since become one of Britain’s largest digital banks, besides Starling and Revolut.

In February, the bank announced that it had reached nine million customers, with two million joining in 2023.

In March, it completed a new $430 million (£339 million) funding round led by Alphabet-owned CapitalG valuing the digital challenger bank at $5 billion (£3.9 billion).

The company was earlier valued at $4.5 billion (£3.5 billion) in 2021 after a funding deal with investors including Tencent and the Abu Dhabi Growth Fund.

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