By ‘providing liquidity to existing shareholders’ do you mean paying a dividend? We are probably 15 years away minimum from Monzo paying dividends.
Or do you mean some sort of offer to buy shares back? Also really not something remotely likely, investors put money in so the money can be used to grow. The shares will be liquid assets after an IPO, and no sooner.
I can only dream of having this level of optimism. Cup so fall it might overflow and cure safe water for the whole levels of happy.
My guess it would be either a way for long-term employees to offload some shares and/or buying shares off an existing shareholder looking to cash out?
Looking at other fintech multiples and bank stocks, I think it’s unlikely Monzo’s valuation will increase very much before IPO now. Times have changed, valuations are back to reality.
Monzo investors have taken a battering with dilution the past few years too.
I can’t see it being worth much more than 8bn if it’s lucky at IPO now
My view has always been that Monzo could position themselves as very comparable to Wise. A few years behind them on revenue and international expansion, but a much broader proposition which allows for more growth potential.
In which case, a valuation in the £8-10bn makes sense to me (Wise current market cap is c.£9.5bn). That would give us a share price of around £25, assuming no more dilutive raises (might be a dodgy assumption 
).
Seems like a new monster fundraiser is happenning
Monzo Valuation in May 2024 - $5.2BN
Monzo boosts funding to $610 million to crack U.S., launch UK pensions. Now valued at $5.2BN
Onward and upward…
“Why are my shares still only 14-quid?” posts in 3…2…
Yes - over $610m raised, valuation now at $5.2bn, but share price the same. I would have thought such a large cash injection would have moved the dial somewhat.
Perhaps someone in the Monzo Community could enlighten us?
To put it as simply as possible:
I have a company worth £100.
I own all 100 shares worth £1 each.
Someone offers to invest £25 into my company at £1 a share.
The company is now worth £125.
Shares are still worth £1 each.
I now own a smaller proportion of a bigger company.
The company is worth more but my share price has not gone up.
Expanded:
To put it as simply as possible:
I have a company worth £100.
I own all 100 shares worth £1 each.
Someone offers to invest £25 into my company at £1 a share.
The company is now worth £125.
There are now 125 shares worth £1 each.
Shares are still worth £1 each.
I still own my 100 shares, a smaller proportion of a bigger company.
The company is worth more but my share price has not gone up.
Think of it like this.
I run a company, it’s valued at £100.
Somebody invests £1m in it. The company is now worth £1,000,100.
My stake is still £100.
Hi everyone, I assumed this thread was going to light up after the Annual Report.
So, what are peoples thoughts on valuation after the report?
2.5x revenue was very surprising to me, in a positive way, obviously.
I wonder, during the fundraises over the last few months, were these figures known to the investors? And they stayed at £4.2B based on the £880M revenue.
Or, are investors expecting a bump in their investment even after only a few months.
Market sentiment seems to be on the upswing again after the souring on Fintech over the past few years. Revoluts’ rumoured $40B valuation, based on the employee share sale is positive news from an industry perspective, in my opinion.
For what it’s worth, ChatGPT says based on the Annual Report, latest valuation is ~£13.2B & a £47.55 share price : ) Now, my prompt no doubt had some unconscious bias in it but here’s hoping.
Disconnect between Revolut’s (supposed) valuation in the news and Monzo’s.
Similar growth trajectory in revenue terms, Monzo about a year behind.
Yes investors would have known all these figures (and lots more info we don’t have).
Bear in mind the 2.5x revenue gain is largely down to interest rates & investments, which are due to fall. Revenue from the likes of plus and premium sales are up (a still very impressive!) 50%. Profitability is likely to be up and down with the interest rates.
Careful now or you’ll invoke the “why isn’t my investment worth £10m crowd” 
£10m? I was thinking more like £20m
Not saying Monzo’s valuation should be at the level of Revolut but if we were to look at Revolut’s valuation it allows to compare, definitely room for a valuation uplift at IPO if based on revenue multiple. Also, given Monzo’s growth trajectory, revenue should be significantly higher next year end.
Revolut
Valuation: $45bn
Last year end revenue: $2.2bn
Last year end profit: $545m
Revenue multiple: 20.5x
Profit multiple: 82.5x
Customers: 30m
Revenue per customer: $73.33
Monzo
Valuation: $4.5bn
Last year end revenue: £880m ($1.14bn)
Last year end profit: £15.4m ($20m)
Revenue multiple: 3.9x
Profit multiple: 225x
Customers: 9.7m
Revenue per customer: $117.52
Yeah that’s quite a difference. Wondering if Revolut’s valuation factors in its much larger user base and global reach…
Monzo maybe is being valued as a bank (bank P/S ratios are closer to 10x) whilst Revolut might be being valued as a tech co (P/S ratios closer to 30x+) in public markets?
The two aren’t comparable on many levels.
