Monzo is now valued at $5.9 billion after the U.Ok.-based challenger financial institution confirmed a secondary market share sale to offer liquidity for its staff.
The transaction, first rumored yesterday, noticed current traders equivalent to Singapore’s sovereign wealth fund (GIC) and StepStone Group procuring extra shares within the London-based fintech.
A secondary market sale primarily rewards staff for getting an organization to the place it’s, with out having to go public — or, no less than, shopping for it extra time.
It has been an action-packed yr for Monzo. The corporate raised $190 million in Could, simply two months after kicking off a $425 million Collection I spherical that noticed Alphabet’s CapitalG and sister VC agency GV making a uncommon co-investment. The startup has now raised round $1.5 billion since its basis 9 years in the past.
On the time of its March fundraise, Monzo mentioned its pre-money valuation was £3.6 billion ($4.6 billion), implying a post-money valuation of £4 billion ($5 billion) — this valuation rose barely with the second tranche that adopted in Could. The next month, Monzo reported its first full-year (pre-tax) revenue, with its revenues greater than doubling from the earlier yr. The corporate claims 20% of U.Ok. adults as prospects in addition to 6% of companies within the nation.
This progress, coupled with a roadmap that features a wider European enlargement and plans to speed up its rollout within the U.S market the place it appointed a brand new CEO final October, has clearly been deemed ample for a valuation bump prior to now 5 months.
Rival U.Ok. neobank Revolut just lately confirmed a brand new valuation of $45 billion by way of an analogous secondary market sale, shortly after securing its personal banking license within the U.Ok. and Mexico.
“It’s nice to have the ability to present staff with some liquidity, whereas assembly additional investor demand for Monzo fairness,” Monzo CEO TS Anil mentioned in an announcement.