We’ve raised £340 million in new funding

Well done team!
Let this fuel Monzo’s growth further!


I think maybe you did :joy:

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.


I mean this was an A class answer :clap:

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Fair enough; yeah shares and stuff aren’t my thing, clearly :joy:

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Some serious investors at the table this time


Fantastic Monzo


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:

  1. Zero people in this thread have even the first clue how to properly value a multi-billion dollar business, myself included.
  2. 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”.
  3. 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.
  4. 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)
  5. 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.

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


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


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.


Congrats Monzo. Such a great achievement. Now’s the time to invest that income boost on Joint accounts :face_with_hand_over_mouth:


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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Are you saying that in the current climate, your valuation is more accurate? Have you forgotten the time when tech stocks were hugely over-inflated a few years ago, a retail crash happened alongside covid, borrowing at an all-time high, tech stocks plummeted, in a recession? :eyes:

Be sensible.

So you basically Monzo had an amazing last 18-24 months but or share price hasn’t gone up 1p, great! :face_with_symbols_over_mouth:

Before people say it’s been a tough market blah blah, even a small increase in valuation would’ve been great.

I just hope it bloody means the IPO would be priced at least double the new valuation. :crossed_fingers::joy:



If the shares had doubled in price, it wouldn’t mean anything. You don’t have that money.

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Have they issued new shares at the same price? Does this mean the pie hasn’t gotten any bigger but our slice has shrunk?

Just asking the question as it would be good to know from someone who knows how this has be structured and how it impacts our shares etc

The percentage of Monzo you own will have decreased, but the value of that percentage is the same.


Who told you that? They’ve had a terrible time in terms of valuation. Lots of great product stuff, though. Just valuation = garbage in that period.

@breville_monkey addressed you on dilution, but here’s what your share price did:

The problem is that we had a pandemic and then a recession with the first significant interest rate rises in 40 years. The former meant that Monzo ate three rounds at a down-valuation (3 cash separate cash injections at the same valuation, over the space of a couple of years, in their “G” round), and the latter means that money is more expensive now (that is literally the definition of an interest rate) so while you think you should be seeing 2x nominal change in your share valuation, in fact you likely are seeing a significant uplift, its just buried behind the higer (global) cost of capital. Not every business is capital-dependent (many are, even when IPO’d, but for instance Apple isn’t), but a pre-IPO VC-backed-startup on the elevator towards IPO is completely capital dependent, so Monzo are eating it on this round, too. There are a bunch of other things going on in the background here that’s driving the cost of capital higher; boomers are entering mass-retirement (where does a bunch of that VC money originally come from? - Pension funds), globilisation slamming into reverse, The US withdrawing from “world policeman” role (open your atlas and draw on it all the new wars we have going on. Scary huh?), and we’ve basically maxed out our ability to fund ourselves with ever decresing interest rates (global debt is at astronomical levels).

So the long and the short of it is that the entire economic system in the world recently tore iteself in half, so you’re actually damn lucky that your shares are flat. In fact, I think that whoever put this deal together made an effort to make it look that way so that the uninformed wouldn’t lose their crap. I, for one, am happy that Monzo in the face of this environment seem to be able to convince the owners of large blocks of capital that they’re a worthwhile prospect, because that means I get to come along for the ride still, despite a bloodbath of economic conditions.