Monzo confirms £60M down round, with a new pre-money valuation of £1.24B

Monzo, the U.K. challenger bank with more than 4 million customers, has confirmed it has closed £60 million in top up funding. Backing the round are existing investors Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive, Passion Capital, along with new investors Reference Capital, and Vanderbilt University. One of fintech’s worst kept secrets, the…

Monzo confirms £60M down round, with a new pre-money valuation of £1.24B

Monzo, the U.K. challenger bank with more than 4 million customers, has confirmed it has closed £60 million in top up funding.
Backing the round are existing investors Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive, Passion Capital, along with new investors Reference Capital, and Vanderbilt University.
One of fintech’s worst kept secrets, the down round sees the bank take a 40% hit in its paper pre-money valuation compared to its previous round, now priced at £1.24B.
That’s likely a reflection of the current funding climate amidst the coronavirus crisis, with Monzo having to raise a bridge round at quite possibly the worst time.
I also understand from sources that a number of Monzo’s later stage investors played hardball, in a bid to force down the challenger bank’s ticket price, perhaps after investing at the height of the funding mark
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