What do you guys think?
There was at least one new string in the Android app teardowns a month or two back that could be taken to vaguely hint at it
I would personally think yes, there will be at least one more, but probably not this year
If they do I’ll be in just so I can have a investor card lol.
On the other hand with the hype for plus it just seems like a good investment
Thanks for the response! Hope you’re well! I’m kinda hoping so, so I can get that nifty investor logo on my card also because I actually think Monzo is great which I why i just got the plus
I’m fine, thanks for asking. Hope the same for you
There were a few new strings in one of the May updates here:
Monzo know that investors are unlikely to make quick returns in the current environment. While venture capital firms are often willing to be patient to see returns on their investment, crowdfunding investors are not, and expect to see their investment grow on a monthly basis.
Since the last crowdfunding round, the situation has got more challenging for Monzo - with:
- The launch of the first Monzo Plus revenue-generating proposition not going as planned, as they were unable to add a compelling set of modular account benefits, as they’d originally announced. This led to fewer customers signing up, and a number of complaints - resulting in the eventual withdrawal of the proposition
- Interest rates have stayed historically low, making it even more challenging to drive revenue
My sense is that until Monzo get closer to making a profit, and therefore closer to seeing their share price grow month on month, they’re unlikely to launch another crowdfunding round. It could a year, or it could be two or three. The launch of the new Monzo Plus proposition is undoubtedly a step in the right direction, though it’s yet unclear whether the enthusiasm of community members is replicated across Monzo’s wider customer base.
Thanks for the response
I’d wait until you read the annual report before wanting to sink any money into Monzo. It’s important to remember that coronavirus had no impact on any of the figures contained within the report when it comes out, so you will really get a sense of the business’ future. Great article on what to look for over here: https://www.altfi.com/article/6648_5-things-to-look-out-for-in-monzos-2020-annual-report
Personally, I think if plus isn’t a huge success, Monzo’s days may be numbered.
In the last financial reporting period I think you will be surprised how much money Monzo deals / dealt with through customers accounts, in ever increasing " full Monzo " account numbers , and gets/ got through interchange fees , business accounts, referral fees and foreign transaction fees , and thats without loans that they were very conservative with, which in hindsight with the amount other banks are reportedly preparing to write off as bad loans seems quite a prudent decision .
The “plus account” is just another step towards profitability, which will not stand still once presented , it will improve further , even before the “premium plus” account and the American adventure …
As you say though the coronavirus will have had a big impact this year , which is why the VC funding round took a roughly 40% hit to “share price” , if , and I know its a big if , the coronavirus hadn’t appeared in the world when it did Monzo I think would have been looking at a roughly £3-4bn valuation funding round in the last round …it did , we are where we are …I wouldn’t write them off just yet
- welcome to the forum by the way
I agree that there will be at least one more.
It think after the last crowdfunding round (which I wanted to invest in but missed ) people were posting here asking if Monzo would do another.
I seem to remember that a vague plan was indicated that a winter 2020 round might happen? But I suppose coronavirus has put any previous plans way out of whack, so I wouldn’t bet on it for a while.
I’m watching out for an opportunity to invest, though, and I’m sure many others are as well.
My original Monzo current account card expires towards the end of this year, and I had hoped that I could replace it with an investor one - I personally wouldn’t want to order a card early as it’s very wasteful for the environment and costly for Monzo.
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