UK-based digital bank Monzo has completed a £60m ($75.9m) funding round that included telecommunications firm Orange and digital payment processor Stripe, TechCrunch reported on Tuesday.
Y Combinator, General Catalyst, Accel, Goodwater Capital, Thrive Capital, Passion Capital, Reference Capital and Vanderbilt University also participated in the round. It valued the company at approximately $1.57bn, down roughly 40% from its previous round.
Monzo offers personal and business bank accounts accessible through its mobile app. Customers can access savings accounts, overdrafts and loans, and there are also money management options such as utility bill splitting.
The economic crisis caused by Covid-19 and the attendant social distancing measures has impacted the company’s business, and it has furloughed nearly 300 members of its UK workforce in addition to closing a US customer support office in Las Vegas.
The round increased Monzo’s overall funding to more than $460m. It was valued above $2.5bn in a $144m round in June 2019 led by Y Combinator Continuity Fund and backed by Stripe and Orange Digital Ventures, Orange’s corporate venturing subsidiary.
General Catalyst, Passion Capital, Thrive Capital, Accel, Goodwater Capital and Latitude also took part in the 2019 round, which came after Monzo raised $108m from General Catalyst, Accel and unnamed investors in late 2018 at a $1.28bn valuation.
Goodwater Capital led a $93m primary and secondary round for the company in November 2017 featuring Orange Digital Ventures, Stripe, Crankstart Foundation, Passion Capital and Thrive Capital, the latter two having joined Orange Digital Ventures in a $24.5m round nine months earlier.
