Monzo raising £100m at £2bn valuation (April 2019)

(Sacha) #1

US backer lifts Monzo to £2bn valuation

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The Times reports fresh Monzo valuation at £1.9bn
New investment round details
The Times reports fresh Monzo valuation at £1.9bn
Monzo in the media
(Emma (still not the app)) #2

IPO by next Easter. Got to be worth starting to guess the date for that now :grin:

The selling shares thread is going to get a bit extreme now

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#3

Did I miss something or are you speculating?

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#4

I think that @Rat_au_van is speculating based on things that Tom has said before. I’m dredging these from the back of my mind, but I think he might have been said that conditions for IPO are >2bn valuation, overseas launch (:us:) and marginal profitability for each account.

Having met the £2bn valuation, that might now mean that Monzo is thinking about an IPO.

(All speculation, of course. Unless anyone can find a source for what I think I might remember?)

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#5

I seem to remember @tom saying if we IPO for £2bn he’d be ‘kind of sad’

“I think if we IPO for £2 billion, we’d be kind of sad. I think we’ve got so much more potential ahead of us to build a genuinely globally impactful company.”

Source

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#6

That sounds likely - but if we reach £2bn private valuation, the IPO would likely be much higher. Successful US launch and highly profitable business accounts might mean (and I’m really guessing here) a significant premium on that £2bn when the IPO happens. So float for £4bn? (Numbers made up, I have really no idea)

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#7

I certainly hope so! We shall see…

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Monzo in the media
#8

My big question: no crowdfunding this round?

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#9

It looks like they are placing - 1billion value for every 1million customers so if we reached 3 million customers by December 2019 that would place a 3+ billion valuation on Monzo by this time next year.

A USA entry funded by the new USA backer

Hopefully profitable by February 2020

That meets all of Toms conditions for a float next year - HOPEFULLY

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(Emma (still not the app)) #10

It’s too soon after the last round for them to be able to justify another crowdfunding to the regulators i’d have thought and they don’t really need it :woman_shrugging:

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#11

How do you know they don’t really need it

How much is it to launch in the USA

(Emma (still not the app)) #12

Last I heard it was using another bank to launch a prepaid as the first step into the US. I was anticipating a raise after that when they get the banking license themselves. But just guessing

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(Justin) #13

Story in the Times this morning: https://www.thetimes.co.uk/edition/business/us-backer-lifts-monzo-to-2bn-valuation-ztxn2gthc

If the report is correct, then the growth in Monzo’s value is truly impressive, but then they have grown their customer base by 600,000 in the past six months alone, so I guess the valuation shouldn’t be too surprising.

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(Justin) #14

It’s a hugely impressive achievement :+1: . What a long way they’ve come since they first launched the prepaid cards for customers less than three and a half years ago! Monzo seem to have been particularly successful at capitalising on the needs of customers in an industry that was clearly screaming for change.

Well done to everyone involved! :heart_eyes:

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#15

Yes agree but can they make a profit.

(Justin) #16

I don’t think profit per se is the most important factor. Clearly, while they continue to invest hugely in developing their services, profits are going to prove illusive. The question for me that makes more sense is “Can their operations run profitably?”, and I believe the answer to be a strong “Yes.”

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(Sajid Sabir) #17

Personally I don’t see the point of an IPO right now.

With recent US investors coming onboard, I assume they are gearing up for a US launch soon.

I think the key trigger for an IPO would be a successful launch in the US. After which I would value an IPO closer to or above the £5bn mark. The VCs that came in at £1bn valuation would want to see around 5x return, so that would be in-line with my prediction of a £5bn+ valuation.

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#18

Any estimate what the share price is now?

Trying to calculate the value of my crowdfunding rounds

(Emma (still not the app)) #19

Wouldn’t even guess as we don’t know how many shares have now been issued

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(benjaminlbowles) #20

My guess would be it stays in the private markets for a while, till at least it gets to a £10bn+ IPO valuation.

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