Monzo, a U.K.-based banking platform, has raised a £85m in Series E funding round at a valuation of more than $1.2 billion.
The round was led by General Catalyst. Accel and the company’s existing investors—Thrive Capital, Stripe, Orange Digital Ventures among others.
The company is taking on traditional banks with its mobile-first bank accounts and counts for 15pc of all new bank accounts opening in the UK.. According to its statement, since the beginning of the year, the company has introduced joint accounts, teen accounts, and other features. It also claims to have reached a monthly active customer count of 800,000.
The startup will use the new injection of cash to launch new products and double its headcount, as it looks to expand beyond its existing millennial customer base to challenge mainstream lenders.
The company lost £33.1m in 2017 and is not expected to be profitable for several years, but despite that, the company seems to be upbeat about its future prospects.