Monzo, a British neobank, has raised an extra $190 million in its investment round, an announcement that is noteworthy. With this, the company has raised an astounding $610 million so far this year. Prominent investors such as Hedosophia, CapitalG (Alphabet’s independent growth fund), and the Singaporean sovereign wealth fund GIC participated in the most recent investment round.
Enhanced Appraisal and Tactical Allocation
Image Source: retailbankerinternational.com
Monzo’s valuation increased to almost $5.2 billion with this most recent fundraising round, from $5 billion in March. With this significant accomplishment, the company becomes one of the most valued fintech companies in Europe. The substantial investment shows how confident investors are in Monzo’s ability to upend the established banking industry.
Strategies for Growth and Product Development
The CEO of Monzo, TS Anil, disclosed that the business plans to use the money to expedite its attempts to expand internationally and create new products. Being the go-to platform for all financial needs is essential to Monzo’s goal, and Anil underlined the company’s dedication to creating solutions that are focused on the needs of its customers.
Innovation and Diversification
After turning a profit for the first time last year, Monzo is currently concentrating on expanding its sources of income. The business intends to diversify into other revenue-producing industries, such as savings and lending. Notably, Monzo intends to enter the pension industry by launching its first pension product in the next six to nine months.
International Growth and Industry Infiltration
Monzo’s goals for growth go beyond its native UK market. With aspirations to provide top-notch services that can rival those of large incumbents, the company is stepping up its efforts to break into the US market. In spite of the obstacles presented by the US market, Monzo is confident in its strategy and is giving product development first priority in order to guarantee success.
Plans for the Future and Growth Pathways
Monzo is looking forward to a bright future filled with innovation and growth. The business is investigating joint ventures to provide mortgage products and is thinking about growing into Europe. Anil noted that although an initial public offering (IPO) is imminent, Monzo’s priority is still growing the company rather than going public.
In conclusion, Monzo’s most recent investment round confirms its standing as a major force in the fintech industry. Monzo is well-positioned to succeed in upending the banking sector thanks to its solid financial support and forward-thinking strategy.
I am a student pursuing my bachelor’s in information technology. I have a interest in writing so, I am working a freelance content writer because I enjoy writing. I also write poetries. I believe in the quote by anne frank “paper has more patience than person
In a world where technology is advancing at an exponential rate, services like online banking are quite common to people. The banking apps that are being launched these days have already been proven to be very useful, due to the ease and the various facilities these provide. With the help of those apps, we are able to pay without withdrawing cash, transfer money abroad, and what not. Monzo Bank Ltd. is one such
exclusive mobile-based bank, based in the United Kingdom. Only four
years to its establishment and Monzo has made a jaw-dropping profit
serving more than 2 million customers.
The History Behind the Success
Monzo was launched in 2015, with headquarters in 38 Finsbury Square, London, and back then, it was known as Mondo. Currently, Tom Blomfield is serving the company as the CEO, and Gary Hoffman is the company’s chief executive and the chairman.
Mondo was founded by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon and Gary Dolman. The five of them used to work in the same challenger bank (Startling Bank) before they founded Mondo. The growth curve of the company impressed everyone since the beginning, especially when Mondo made history in the quickest crowd-funding campaign, in February 2016. The company raised $1 million within a time span of 96 seconds, and hence brought some good fame and lucrative investors to the house.
Image Source: bluegg.co.uk
Initially, the company was approved to have a restricted banking license by the financial regulatory bodies of the UK, but later in April 2017, the restrictions were withdrawn. The customers of this app used prepaid debit cards until the current accounts were accessible to them, and in April 2018, the prepaid scheme was shut down.
When the company carried business under the trade name Mondo, there were many complains launched and open challenges, that there already exists a company with the exact trade name. So, without going into many grimy situations, the founders changed the name of the company. They announced the name Monzo, officially on 25th August 2016. In the same year, Monzo raised around £4.8 million through ‘interim’ funding round, followed by another £2.5 million by Crowdcube crowd-funding campaign.
From 29th September 2016, the app for Monzo was made available to the public of the UK, and those who visited the office in person were provided with private beta. So, all you needed was a mobile app and a prepaid debit card to become a customer of Monzo and enjoy the endless facilities.
One of the biggest reasons that the company turned out to be such a mammoth corporation in no time was its transparency. The official website of Monzo had a live counter which showed the rollout with constant updates.
In July 2017, all the eligible customers were welcomed to sign in for a preview of the full current account, and in October 2017, Monzo declared that it would cease the free ATM withdrawals (abroad). The company replaced it with a new system, where it provided free withdrawals up to £200 and charged a 3% fee on each transaction after the limit is over. This new scheme started working on 18th December 2017. Monzo also issued Debit Mastercard cards for all the new and existing customers who signed up for the current accounts.
In June 2018, Monzo declared direct collaboration with IFTTT, which enabled the users to connect Monzo with smart devices. The company gained more attention and fame after it spotted a Ticketmaster (An American based ticket sales and distribution company) data breach in June 2018, which had held in April 2018. By this time, Monzo had already outweighed the competitions in the market and embraced more than a million customers.
In June 2018, Monzo declared that incorporation with TransferWise will now allow money transfers globally through the app. And later, the company announced that on savings of more than £1,000, it will provide interest in partnership with Investec. In November 2018, Monzo added another feature of paying cash into its respective Monzo accounts charging £1 for every deposit. And the year ended with Monzo having an enormous win in the Crowdcube crowd-funding campaign where it held £20 million and reached the target within a few hours.
In January 2019, Monzo declared its
collaborations with Flux to give loyalty points to the customers and
thus gaining more popularity.
Thinking Out of the Box
Undoubtedly, there are many other
tech savages out there with better versions of online banking and
finest technology, but what makes Monzo so different? Everyone
focuses on the victory, the team has achieved in the journey of four
years, but not the strategies that made them conquer it.
The major key to their success was
the vivid observations that the team made, which helped them grab the
earliest opportunity to expand the business with the beginning of the
digital age. By the time Monzo established its business, more than
45% of the population used net banking for their daily purpose. So,
only a little or no investment was needed to promote the technology
among commoners.
The company focused more on listening to what the customers suggested, to make it more user-friendly, and the opinions were welcomed through social media platforms. This played a very important role in strengthening the bond between the customers and the company. And consequently, when the referrals increased, Monzo started making its customers feel comfortable and safe.
All these brilliant policies
resulted in such an overwhelming success of Monzo, making every
start-up dream about its glorious triumph. Today, the company has
around 776 employers providing support to millions of customers 24/7.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more
