I think it was valued correctly last time and this time it is NOT valued correctly. How on Gods earth can you aquire 4 million customers and the valuation only increase by $500 million
Maybe your own valuation is upsetting you?
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I have been consistent in my predictions regarding IPO’s for Monzo & Freetrade 2023 was my prediction BEFORE COVID and now it is 2025 OK?
Why? That’s why all the VCs are investing.
I actually think the opposite. Investing because you care about a business is a fools game, make investments for profit and for no other reason.
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Yes it will be valued at £8 billion next year
Well, yes, if you keep saying it’s next year then one year you’ll be right – but you’ve been wrong every year leading up to that.
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Yeah, to me this is a mistake. Firstly, Monzo certainly never needed the small amounts of investment they got from crowdcube, so I don’t think anyone was ever really helping them by investing. It was for marketing and brand loyalty, like crowdcube raises for good companies normally are (if a company has to crwodfund to actually grow that’s usually a warning sign).
And anyway, if you like a business, use them, share them on social media or reccomend them to your friends - but an investment with your money is all about return.
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They make £1million on lending
They reinvest £1million into product development
Not that difficult to understand, or maybe I misunderstand 
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Well done team!
Let this fuel Monzo’s growth further!
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I think maybe you did
The main determiner of share value is the market they are sold in, like any other product.
Imagine you are selling lamps. You make great quality lamps, right now the economy is great and everyone wants to buy luxury goods, so you sell your lamps for £100. Then six years later, you’ve made your lamps much better - nicer quality and some extra features - however at this point the economy has changed, very few people have the money to buy those lamps and those that do know you are struggling to sell them. Even though your lamps are better, and six years ago might have been worth more, in the current market you would be doing well to sell your new and improved lamps at £100.
This is basically what’s happened with startup shares. People have less cash to invest and less appetite to buy risky investments, so to keep the same valuation is really pretty good.
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Fair enough; yeah shares and stuff aren’t my thing, clearly
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Some serious investors at the table this time
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Fantastic Monzo
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Well done Monzo for holding the valuation in a grizzly market, and making plans to expand. That’s great news for investors.
It’s a bit sad that this thread has mostly degenerated into bickering about whether the valuation is correct or not. On that topic I would like to note that:
- Zero people in this thread have even the first clue how to properly value a multi-billion dollar business, myself included.
- It’s quite obviously not as simple as “more customers = bigger valuation”, not least because if you make a loss on each customer then, as the joke goes, “you’ll make it up in volume”.
- It makes no sense to say that the “big boys” are pillorying the crowdfunding investors - the other investors who invested historically, even the ones who invested in 2021, are eating the same deal.
- If Monzo doesn’t get more money this way, your investment is worth zero anyways as they’re not profitable yet, and they also still need to expand (not even stand still)
- Can anyone in this country not see extremely clearly that with interest rates going up - i.e. definitionally the cost of capital increasing, that deals for companies that had valuations in a previous period of a low cost of capital are going to have those valuations fall? The price of money went up. Dead simple.
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to add to @duncang excellent post, the market out there for funding, especially fintech funding is brutal, and its credit to TS and the team, to have gone and sold the vision to the likes of Capital G, that this is a business that’s going in the right direction, and you better get on now.
The balance sheet looks strong, the business is growing in a wider economy which is on its arse, and get the expansion right, it’ll be all good
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seriously who on earth flagged this
Please Monzo, spend some of that investment on getting your customer service levels back to where they used to be
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Can’t lie, I was expecting maybe a slight uptick in the share price. But being able to raise money at all in this economy is extremely challenging. It’s not 2021 when the capital was flowing every which way.
So good on Monzo for getting this investment pinned down. Let’s hope it’s used in a way that increases profitability. Glad to see more US expansion seems to be on the cards.
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Congrats Monzo. Such a great achievement. Now’s the time to invest that income boost on Joint accounts 
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Somebody willing and confident to pump £300m+ into Monzo, that is a wonderful sign. I assume this isn’t a loan with guaranteed repayments, this is stock so they believe there is considerable growth potential.
Can I wait another year to see the share price hit £30? Oh go on then.
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