Monzo, the UK-based digital bank unicorn, has achieved a notable milestone, reaching a £4.5 billion valuation through an employee share sale. This transaction comes after earlier backing from key investors, including StepStone Group and GIC, Singapore’s sovereign wealth fund, both of whom participated in Monzo’s £500 million fundraising round earlier this year. Now Monzo, trails behind two other prominent neobanks in Europe: Revolut — valued at $45 billion, and N26, valued at around $9 billion. (Dealroom data)
The secondary deal allows Monzo’s equity-holding employees to convert their stock into cash, offering them an opportunity to capitalise on their investments. This development underscores Monzo’s continuing growth and appeal to investors, even in an increasingly competitive fintech market.
Since its inception in 2015, Monzo has secured over $1.9 billion in primary funding from a range of high-profile investors, including CapitalG (a division of Alphabet-owned Google), Tencent, and Passion Capital. These investments have fueled the digital bank’s growth, helping it expand its offerings and customer base while solidifying its position as a leader in the fintech space.
Monzo’s valuation comes as the company continues to expand its product offerings and user base. The British fintech initially made waves with its mobile banking app and user-friendly features, rapidly gaining traction among younger users who prefer a fully digital banking experience. Today, it boasts over 10 million customers, with a growing portion opting for its premium services such as Monzo Plus and Monzo Premium.
At th same time, Monzo isn’t the only fintech turning to secondary funding recently. London fintech giant Revolut recently announced that it reached a valuation of $45 billion after an employee secondary share sale. With this, it became Europe’s most valuable company, surpassing that of Klarna and Checkout.com. Before this share sale, the company was valued at $33 billion after raising investment in 2021.
Additionally, reports are floating, UK-based payments firm SumUp is reportedly preparing a share sale that could value it at nearly $9 billion.
London’s neobank ecosystem is thriving, featuring a mix of local startups and international entrants. UK-founded companies like Revolut, Monzo and Starling Bank have seen remarkable expansion, attracting substantial customer bases. These digital banks are now approaching their goal of going public through IPOs. Each one offers distinct advantages for different market segments, especially for small and medium-sized enterprises (SMEs). If you’re wondering which is the best option for SMEs, comparing Monzo vs. Revolut vs. Starling Bank can provide valuable insights.
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