Monzo Raises £60 Million with a 40% Valuation Discount

London-based digital bank Monzo has confirmed a fresh Funding Round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term of £60 million (around $75.89 million) with a valuation of £1.25 billion ($1.58 billion) - a 40 percent drop from its previous valuation of £2 billion ($2.44 billion).

Mostly, the Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term’s existing investors, including Y Combinator, General Catalyst, Accel, Stripe, Thrive Capital, Orange Ventures, Goodwater Capital, and Passion Capital, participated in the round. But there is an addition of at least two new participants - Swiss fund Reference Capital and Vanderbilt University.

Monzo’s attempt to lure investors with a discounted valuation was already reported last month.

In the previous funding round closed last June, the company was valued at over £2 billion, making it the second most valued fintech in the UK. The latest valuation drop drags the firm closer to its 2018 levels.

Though not cleared out by the British fintech, this round is believed to be the first of the two - another £40 million ( $50.5 million) is expected to be closed in the coming months, putting the total fresh funding at £100 ($126.5 million)

With more than 4 million customers, Monzo is a major fintech disrupter in the UK, but it is still highly unprofitable. The company is also eying to step into the US market and already applied for a US banking license, the approval for which might take around 12 to 18 months.

A lot has happened at Monzo

The confirmation of the funding came a couple of weeks after the company laid off 120 staff from its UK office due to the economic hardships.

The company already shuttered its Las Vegas office and furloughed 300 UK-based staff earlier due to COVID-19.

Last month, there was also a shakeup in the digital bank’s leadership as its poster boy co-founder Tom Blomfield was replaced by veteran banker TS Anil.

Meanwhile, The Guardian recently reported that Monzo is freezing its customers’ accounts without noticing them, defying the advisory of the Financial Conduct Authority (FCA) to the banks to help the customers through the COVID-19 crisis.