Monzo Going Bust?

Hey,

My mother ‘might’ of seen on the news that Monzo might be going bust? Something about cannot pay back interest or something?

Did my mum mix up banks or is it indeed Monzo?

Thanks :slight_smile:

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I’m 100% confident there’s some confusion here,

No they aren’t.

They are yet to make a profit but this will be achieved through various features over time like overdrafts, marketplace etc.

They currently survive off raised capital. This process is normal for a startup at least for a few years.

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It’s certainly not news I’ve seen but I’m not clued up enough on bank finance to offer anything more insightful I’m afraid. Personally, I say ‘not a chance’ but that’s just my opinion.

Edit: Hmm, Coral Crew defending Monzo. What a surprise. :stuck_out_tongue_winking_eye:

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Your mum might be referring to this in the news in July when Monzo’s annual report mentioned that their losses had grown.

As was pointed out then, and as I point out now, most startups run at a loss in the first few years. Thats why they have fundraising rounds and Monzo’s current project is to break even in the next year or so.

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Right now they are losing money. Their ability to stay afloat depends on more fundraising via crowdfunding and institutional investors and the ability to start to generate some income.

This would be news to me if true. :eyes:

(This is probably actually about Wonga? :sweat_smile: )

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Yes, that mich I do understand.

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Ah yes, just of been Wonga - bless my mother hahaha

Cheers :slight_smile:

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It does get confusing all the fintech names.

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Staff always the last to know :wink:

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