Monzo, one of a number of so-named “challenger” banks in the U.K. aiming to re-invent the current account, has disclosed details of its new funding round.
Confirming most of the details from our report earlier this week, the startup has raised £19.5 million from U.S.-primarily based Thrive Capital, London’s Passion Capital, and Orange Digital Ventures, the venture arm of telco Orange. They are investing £13 million, £5 million, and £1.five million, respectively.
The London-based organization is also planning to raise an extra £2.5 million via yet another equity crowdfunding campaign on Crowdcube. The combined round pegs Monzo at a pre-funds valuation of £65 million.
Given how speedily Monzo reached its earlier £1 million crowdfunding raise — which spectacularly closed in 96 seconds — it shouldn’t have any problem putting this new offering. In fact, the startup is creating distinct plans to deal with the anticipated demand:
Monzo will host a pre-registration period from February 28 – March 14 when any of its consumers can express their interest in investing. The total quantity pledged will be displayed in real-time on Monzo’s web site, followed by a ballot to randomly choose the men and women who’ll be capable to authorise their investments from March 14.
The new combined funding, which will bring total raised to £35 million, will be utilised by Monzo as it readies for a full bank launch later this year. As it exists today, Monzo’s more than one hundred,000 users get access to a pre-paid MasterCard and accompanying iOS and Android apps. It provides the ability to do issues like track your spending in true time, view geolocation-marked transactions on a map, view spending by category and get a graphical timeline of your general expenditure.
Once it has launched a fully-fledged existing account, Monzo says it will initially make cash by supplying “transparent overdrafts with no hidden fees or charges,” but plans to diversify away from conventional banking company models in the longer term. “The company will aim to give its consumers one particular-click access to a broad range of financial merchandise from third parties as part of a move towards ‘banking as a marketplace’,” it says.
Meanwhile, as we noted when TechCrunch broke this story on Monday, Monzo is not the 1st European fintech to receive backing from New York-headquartered Thrive Capital. The VC firm, founded by Josh Kushner, lately led a €30 million Series C round in German fintech Raisin, which gives pan-European savings accounts.
Nevertheless, it does leave the door open for Monzo to launch in the U.S. sometime in the future. And despite the fact that this isn’t a concrete plan or likely to come about any time quickly, co-founder and CEO Tom Blomfield has made no secret of his ambition to bring Monzo across the pond at some point, one thing he re-iterated in a very brief get in touch with last evening. He has previously spent some time living in New York, which is really how he very first came into make contact with with the folk at Thrive Capital.
Listen to TechCrunch’s recent interview with Monzo co-founder Tom Blomfield