Yeah it’s this. It’s expanding in multiple countries and it looks like it’s on its way to becoming an international tech giant. Monzo, so far, is growing into a reasonably sized and profitable U.K. retail bank. Which is still cool but just a very different trajectory.
Overview doesn’t include revenue and profit (can be added, it’s a wiki), but this table might be interesting to compare valuations: State of fintech around the world 🌎
Read my post, I’m not saying Monzo should be compared against Revolut when it comes to valuation and multiples. My intention was to demonstrate that Monzo have plenty of room for growth as well as valuation such as revenue multiple, not saying Monzo should be 20x revenue multiple, so stop having a hissy fit.
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With the best will in the world, I think you did pretty explicitly compare the two.
This is also comparing Monzo and Revolut based on valuation and multiples.
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Nobody is having a hissy fit, just disagreeing with you.
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View it how you want but I’m not saying Monzo valuation should be similar to Revolut.
However, I was trying to demonstrate Monzo’s growth potential, for example, Monzo is concentrated in the UK, therefore with cracking the US market will support uplift in multiples. Revenue increase will uplift valuation. Revolut’s uplift in valuation will have a positive impact on valuations in the Fintech market.
I’m not saying Monzo should be 20x revenue multiple but anything toward the 10x at IPO could be a possibility but it is likely dependent on traction on some of the above variables. Also, a US listing tends to have more racy valuations.
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While I think this article is incredibly optimistic, it just popped up on my Google alerts and is dated today.
Anyone have any insight or opinions?
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It might explain why they’re rushing through releasing new products
It has quickly gained popularity, attracting over 5 million customers who use its app-based banking services.
Bit out of date!
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Bit of a weird article, referring to older information like the outdated 5 million customers.
The $45B price tag is the valuation Revolut got recently.
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That’s a very interesting comparison, SajSabir. Thank you for providing it! The two companies are definitly in the same comparison set. The difference in multiple is likely – like you suggested – explained by the the difference in Total Addressable Market (TAM). Monzo has not been able to show significant growth outside of the UK yet, whereas Revolut is international and has a much big market to tap into.
Hence, demonstrating traction abroad is likley the key for Monzo to significantly increase their valuation.
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I think that’s a bit of a harsh assessment, Carlo. A banker creating a comp table would very likely include Revolut. Though it’s fair to say that both companies are different in terms of market size or potentially other metrics, such as revenue growth (not sure about the details tbh).
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It could put them on the table, but as a like for like surely?
The product offerings are totally opposite.
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The article about early IPO seems a bit sloppy but if it was a possibility I would be very happy to see an early IPO or if the rumours of IPO made an American or foreign bank come forward with a buyout offer I would more than happy to sell my shares - especially at a £10 billion valuation.
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A total opposite would be a restaurant business or an elderly carehome or a consulting company. In the grand schemes of things, Revolut and Monzo and its products are extremely similar and it’s helpful to include both companies when creating a valuation analysis. You create comp tables to find range of plausible multiples: All numbers must always be considered within the context of difference in growth rates, profitabilit, market size etc., which explains why the specific multiple of one comparable is different to another one.
When it comes to finding a valuation for one company, it’s a bit like a negotiation: you could say, for example, that Revolut has a higher revenue growth rate and this justifies a higher multiple but than Starling has lower growth rate and hence a lower multiple. (I am making this up, I don’t know if Starling grows faster or slower). So, we will position Monzo somewhere between those two and give them 80% of Revolut’s multiple and 20% of Starling’s multiple. So you can see how including Revolut in a comparables table is helpful to finding a number for Monzo.
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To be honest, while I would love for a Monzo IPO to happen soon, this FF News article sounds like it was written by AI… 
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Sadly I think you’re probably right.
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AI generated nonsense - notice how there is no reference to where these reports are from?
Best to ignore.
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Valuation 2025
This is a speculation thread which suits my ignorance down to a tee?
“Correction the speculation thread is now closed”
I speculate that the next valuation for Monzo will be at least £10 billion with the share price approximately £30 or less if there is a stock-split which is very likely.
I also predict no more dilution!
Just Speculating of course 
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I can definitely see a stock split close to the IPO
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Would a stock split mean I have double the shares or does it mean an instant 50% dilution to me?