As online banking continues rapidly evolving, ahead of another anticipated round of funding next year, digital challenger bank Monzo remains in discussions to secure as much as £100m in upcoming weeks.
The financial startup plans to raise between £50m and £100m in early 2020, amplifying an earlier June 2019 deal that netted Monzo £113m.
Monzo, founded by entrepreneur Tom Blomfield, acquired 3.5 million customers in 2019, offering those users a mobile app bank account and a distinctively-colored coral credit card.
Popular with younger banking customers thanks in part to digital payments and other appealing features, the company has nevertheless moved rapidly through the venture capital funds it had already acquired during its expansion.
Monzo lost approximately £55m as of February 2019, a significant increase from £33m at the same point in 2018.
A potentially bigger financial boost could come next year as Monzo seeks additional funding early in the new year. It remains in discussions with current and potential investors regarding a new deal, according to The Daily Mail.
Earlier this year, Monzo, one of Britain’s largest startups, drew interest from notable Silicon Valley investor Y Combinator, known for key investments in successful, household name companies such as Airbnb and Dropbox.
Revolut, a rival digital bank, is thought to be in talks to raise similar amounts of funding from investors that could value their company up to $10bn. Concurrently, the digital challengers have also expanded globally, Revolut across Europe and Monzo into the United States earlier this year. But other competitors loom, as well as their respective financial challenges. United States financial giant Goldman Sachs introduced its own digital banking service, Marcus, late in 2018. In the U.K., RBS released Bó, yet another digital banking app.
Monzo declined any official comment.