The capital comes courtesy of investors including London-based Latitude and Y Combinator Continuity—the late-stage arm of the accelerator that has backed big names like Airbnb and Dropbox—and will go toward Monzo's growth in the US. Just two weeks ago, the British startup unveiled plans to launch across the pond. While it applies for a US banking license, US users will have access to a "light" version of Monzo's app with limited features, such as person-to-person payments and fee-free spending abroad.
The app has done remarkably well since launching in 2015. Monzo boasts more than 2 million users, including 200,000 who joined last month alone. However, despite the apparent allure of its signature coral card, the London-based company has yet to turn a profit. The company's 2018 financial report announced a pre-tax loss of £33.1 million, more than four times the £7.9 million lost the year before. The increase in loss is a byproduct of the heightened operating costs to become a fully operational bank, Monzo said in the report.
However, those numbers clearly aren't putting off investors as various VCs have poured increasing amounts of money into the business. In November, Monzo joined the unicorn ranks after it reportedly raised £85 million in a round led by General Catalyst. Just a year before, the startup had landed a £71 million round that valued it at £280 million, per reports.
Monzo's newest funding is just the latest in what has proven to be an exceptionally lucrative year for European fintech startups, particularly those based in the UK. Since the beginning of 2019, the industry has seen massive deals including the continent's largest-ever fintech Series A in which Checkout.com scored $230 million, OakNorth's record-breaking $440 million SoftBank-led round and N26's $300 million fundraise.
Featured image courtesy of Monzo
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