UK-based digital bank Monzo secured £60m yesterday to increase a series G round featuring telecommunications firm Orange and digital payment processor Stripe to £125m ($167m).
The new funding came from conference operator Ted Global, Novator, Kaiser and Goodwater Capital, according to TechCrunch. Monzo confirmed it as an extension to its existing series G funding.
Stripe, Orange, Y Combinator, General Catalyst, Accel, Goodwater Capital, Thrive Capital, Passion Capital, Reference Capital and Vanderbilt University provided the first £60m in June this year, and the company had since quietly raised another £5m.
Monzo runs a digital bank with more than 4.8 million customers, offering current accounts as well as business accounts, which are used by some 60,000 of its customers. It has now raised in excess of $550m since it was founded in 2015.
The series G funding was secured at a $1.57bn valuation, a notable downturn to the $2.5bn valuation achieved when Monzo raised $144m in June 2019 from investors including Orange subsidiary Orange Digital Ventures and Stripe.
The 2019 round was led by Y Combinator’s Continuity Fund and also featured Goodwater Capital, Latitude, General Catalyst, Passion Capital, Thrive Capital and Accel. It followed a $108m round in late 2018 led by General Catalyst and backed by Accel and undisclosed existing investors.
Goodwater Capital led a $93m debt and equity round for Monzo in November 2017, investing alongside Stripe, Orange Digital Ventures, Crankstart Foundation, Passion Capital and Thrive Capital, the last two having joined Orange Digital Ventures in a $24.5m round nine months earlier.
