U.K. based digital banking platform Monzo has announced picking up $144 million as part of Series F funding led by Y Combinator which takes the valuation of the firm to over $2.5 billion. Interestingly, the capital infusion comes at a time when the company is planning to launch its operations in the United States.
The current capital infusion in the firm takes the total amount raised by it to over $350 million. The other investors in the firm include the names like General Catalyst, Passion capital, Latitude Partners, Stripe, Accel, Thrive Capital, Goodwater Capital, Orange Digital Ventures, Future Fifty, and others.
Founded in 2015 by Gary Dolman, Jason Bates, Jonas Huckestein, Paul Rippon and Tom Blomfield, Monzo acts as a digital-only banking platform, aimed at the smartphone users who do not want to stand in the queue of the banks.
The fresh funds will help the company to start very strongly in the U.S as it plans the start of its operations in the major U.S. cities including Los Angeles. Notably, Monzo is joining hands with a local bank to get a start in the region and then it plans to apply for its own U.S. bank license, as it did in the U.K. Tristan Thomas, Monzo’s head of marketing speaking to CNBC about how the firm has grown quickly, doubling its customer count to 2 million since its last funding.
YC’s Continuity Fund partner Anu Hariharan talking about their decision of investing in the company to CNBC said, “We think the banking systems are really archaic. It’s really hard for them to just adapt to what the modern world requires. One reason that led Y Combinator to invest, was the traction with which they hit 2 million users in the U.K., with engagement metrics that almost look like a social network.”
As money pours in, it will be interesting to see if Monzo can manage to pull off the same success as it had in the U.K.
Image Courtesy : monzo