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Tencent (0700) joins backers to invest in UK digital bank Monzo

By Angela Barnes

15:40, 4 January 2022

File photo of a Monzo online financial banking logo on a smartphone
Monzo adds Tencent among its list of already existing backers – Photo: Shutterstock

Chinese tech giant Tencent has joined backers and invested in UK online bank Monzo, bringing the total amount the company has raised in its latest funding round to $600m, valuing the business at more than $4.5bn.

Tencent joins existing Monzo investors, including Coatue, Abu Dhabi Growth Fund, Novator, Kaiser, Orange Ventures, Alanda and TriplePoint. Accel, General Catalyst, Goodwater, Passion Capital, Octahedron and Thrive have also invested in the challenger bank, the company said in a statement sent to Capital.com.

Monzo has said the money raised will allow it to supercharge growth, fuelling its ambition to transform the banking industry and become the one global money app that allows consumers to control their entire financial lives.

Monzo’s chief executive, TS Anil, commented on the funding in a statement sent to Capital.com: “The high level of investor interest we’ve had in this round is testament to our performance as well as the huge opportunity that lies ahead.

“With the backing of some of the best names in the investment community, we’re going into next year with big ambitions – and we’re just getting started.”

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Financial performance and growth

The latest investment in the company comes off the back of its revenue doubling this year. Monzo said it has more than five million customers and is adding around 100,000 per month. Moreover, it said more than 300,000 of its customers are using paid and business accounts.

It also added in a note sent to Capital.com that roughly 25% of its revenues had come from new products launched during the pandemic.

In addition, the company noted it now has 2,100 employees, up almost 60% since January last year.

Read more: UK retail price inflation up in December, set to rise further

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