Monzo to raise £500m from Hedosophia and other investors

Monzo, a leading British fintech group, is finalizing an expanded fundraising round this weekend, which includes investment from prominent global technology investor Hedosophia, known for its early support of Airbnb and Uber. According to Sky News, Hedosophia has agreed to terms to become a new shareholder. City insiders revealed that an announcement could come as early as this week, indicating that Hedosophia, along with Singapore’s Government Investment Corporation (GIC), will participate in a fundraising effort nearing £500m.

This fundraising round, larger than initially anticipated, ranks among the biggest for a UK tech company. Insiders note that GIC is set to invest over £50m, with Hedosophia also contributing a substantial sum. Hedosophia, founded by Ian Osborne and an investor in notable tech companies such as Wise and Marshmallow, has declined to comment.

The new funds are expected to support Monzo’s future growth without additional capital, especially as it prepares for a potential public offering in the coming years. Recently, Monzo achieved a valuation exceeding £4bn after the initial phase of its funding round. Since its inception in 2015, Monzo has grown significantly, offering various financial services and ranking as Britain’s seventh-largest bank by customer numbers.

This fundraising was primarily led by Capital G, Alphabet’s independent growth fund, marking a significant milestone for Monzo as it continues to expand and potentially prepares for international growth and a public listing. The bank has seen a turnaround from a challenging period two years ago and is on track to report profitability this year, signaling a pivotal moment for the digital banking sector.

Source: https://news.sky.com/story/digital-bank-monzo-expands-fundraising-to-500m-in-deal-with-top-tech-investor-13124845