I invested in the 1st and 2nd stages of Crowdfunding for Monzo - I read all the discussions about the 2019 vote on investors terms and without stirring the pot, do we have any indication of what happens if Monzo have an IPO in 2026
Monzo will need to weigh up appetite for IPOs with their desire to reach whatever milestone they have in their minds.
At the moment there is talk that the IPO scene is returning to 2021 levels so 2026 could indeed be a very good year to IPO. Last projection I saw was a £7-8 billion valuation, is that the 2026 projection or could Monzo be at £10 billion by 2026? But if Monzo pass this by then it could be years if the IPO market cools again.
I’ve never been apart of an ipo before - I’d like the option to have a hybrid approach, sell some and keep some. Also wouldn’t it be great if you could have your Monzo shares in your Monzo investment account.
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2019 vote?
I can’t see how it can’t achieve a £10bn valuation if revenue growth and user growth continues.
If it can show real traction in the US in the meantime, definitely
The vote was based on a change of terms for the Crowdcube investors from round 1 circa 2016/2017
What would a £10b valuation mean for share prices?
I’m basing this on sketchy memory and knowledge.
I think the latest round where TS allowed himself to sell shares and make £12,000,000 whilst leaving the rest of us out in the cold was valued at £4.5 billion and those shares sold at £15.10. Doing very basic maths (ignoring potential dilution, options etc. and stuff I don’t t know about) 10/4.5 multiply by £15.10 is £33 a share.
I look forward to being told why I can’t participate in the next share sale. Only kidding - they won’t tell me why I can’t participate.
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Pretty sure the change impacted future rounds, the first two. The new fees applied to subsequent rounds once passed.
If/when they list the default path is that your shares are converted into shares in the publicly traded company. You can then sell however many you wish.
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No reason why Monzo should be valued at £10bn+.
I know Revolut is a larger beast but if we look at their revenue multiple based on $45bn valuation, it’s about 11x. However, with suggestions that their next funding round could value the business at $75bn, then based on 2024 revenue this throws out 18x revenue multiple.
Monzo’s valuation of $5.9bn (£4.5bn) at last funding round against 2024 revenue gives us a revenue multiple of about 5.4x, significantly undervalued. If based on 2025 revenue £1.2bn, this multiple decreases further.
In my eyes, if Monzo can grow business customers, increase fee paying accounts, increase loan revenue, and traction in the US, there’s no reason why Monzo should be valued at 10x revenue.
Personally, I think Monzo will wait for 2026 figures before an IPO as I’m confident they could easily achieve £1.5bn-£2.0bn revenue.
I think I’m good for a few more years of growth. If it gets anywhere near the size of Revolut, I’ll be very happy indeed 