I really disagree with your points.
VC funding will stop at some point, it’s not going to be available to monzo forever. Their losses are nearly doubling every year and they’ve pretty much launched all their revenue generating products. VC fatigue will become very big if Starling and Revolut are profitable by the end of the year and monzo is losing £114 million a year. Starling are on track to be profitable as per their report today and Revolut haven’t deviated away from their goal of becoming profitable by years end.
I think it’s an absolutely huge stretch to think someone is going to swoop in to acquire a company losing £114 million a year while their two biggest competitors are going from strength to strength and near profitability. Why wouldn’t legacy banks just let monzo fail and get their customers and deposits for free?. They will have to go somewhere if they leave monzo to fail. The annual report has shown monzo may have millions of customers, but they’re largely millennials who are low income customers that don’t drive much revenue. Based on all the press over the last year, glassdoor reviews, and annual report, I don’t think many will be looking to align with the monzo brand.
Again, Covid really hasn’t hit the whole fintech sector; it seems monzo have been completely decimated while the other big fintechs let go a small number of staff or none at all. Starling announced their annual report today and are on track to reach profitability. Revolut are raising money at their current valuation without a down round like monzo. Nubank, N26, Chime Bank, Tide aren’t announcing similar news to monzo.