Monzo digital bank could double its value to £ 2 billion with new US stake | Business

The fast-growing digital bank Monzo is about to raise new funds from a US investor who could double its value to £ 2 billion as part of a transaction that will make it the second largest Fintech start-up in Great Britain.

The challengerbank, which has gained 1.2 million customers since its launch in 2015, is on the verge of hitting £ 100m for a new unidentified US investor just a few months after raising £ 20m in the UK. part of a crowdfunding campaign involving a large number of its clients.

If the new investment materializes, Monzo will beat rival Revolut as Fintech's second start-up company in the UK, behind small-business lender OakNorth.

The new investment also suggests that the 36,000 small investors who participated in crowdfunding may already be making big gains on paper, the popular Monzo community forum buzzing with news.

A user identified as a crowdfunding investor on the Monzo community forum said the shares would likely have a value of "£ 12 to £ 14 minimum, if the announcement of an increase in value is At the time of the crowdfunding, the shares were valued at around £ 7.70 although the shares are not tradable.

Another asked, "What is the smile level of the first round investors today?" The Breton user, also identified as a crowdfunding investor, replied, "Personally, I can help you. say a lot. Good news to wake up on a lazy Sunday! "

This also prompted speculation on a short-term IPO of Monzo. However, the bank has not yet reported a profit and recorded a pre-tax loss of £ 33.1 million in February 2018, compared to a loss of £ 7.9 million a year ago, due to costs of 39, higher exploitation.

The Sunday Times, which for the first time announced the investment in the investment, said Monzo's board had already approved the American's injection of funds, but warned of a possible delay. Monzo could wait months before obtaining regulatory approval from the city's prudential regulator.

Monzo did not respond to requests for comment.

Monzo was forced to defend his crowdfunding efforts at the end of last year, after being accused of allowing clients to borrow from the bank using his overdraft facility – which costs 50 pence a day – for buy shares.

It is forbidden for companies to lend money to their customers to help them buy the shares of the company. It is intended to avoid the creation of fake markets, although the use of overdrafts is not covered by the rules.