Fast-growing challenger bank Monzo has raised £85m from US venture capital investors to hit a landmark valuation of over £1bn, making it the latest UK tech start-up to pass the “unicorn” milestone.
Known for its coral-coloured cards, Monzo said it now has more than one million customers and counts for 15pc of all new bank accounts opening in the UK. The bank recently switched its pre-paid card system to current accounts.
Monzo raised the new funds from venture capital firms General Catalyst and Accel Partners.
The fintech company is also planning another crowdfunding round of £20m, as revealed by the Sunday Telegraph earlier this year. Monzo raised a further £71m in an equity round from Goodwater Capital in November last year.
Chief executive Tom Blomfeld said: “It’s incredible that more than one million people are now using Monzo and a testament to all the hard work that’s gone into building the company over the last three-and-a-half years.”
The fintech faces growing competition in the UK market. Revolut, one of its closest rivals, raised $250m earlier this year at a valuation of $1.7bn. Founded by Russian-born entrepreneur Nikolay Storonsky, Revolut boasts 2 million users. Berlin fintech start-up N26 has also said it will launch its challenger bank app in the UK.