Monzo, one of the U.K.’s digital-only banks, is getting closer to securing new Series C funding, with U.S.-based Thrive Capital reportedly leading the round. An announcement could come as early as this week.
While an exact investment amount wasn’t disclosed, TechCrunch is reporting that it could be around £30 million. There are also reports that Monzo is planning to launch a second equity crowdfunding campaign soon.
Founded in 2015, Monzo received a U.K. banking license with restrictions in 2016 and is now working to roll out its free current account. Users can sign up for Monzo Beta, which gives its more than 100,000 customers access to a prepaid Mastercard and accompanying iOS and Android app. The app allows them to receive instant spending notifications, add receipts to purchases, manage their budget and more. There are no setup or usage fees, as well as zero charges for spending abroad.
The startup has previously raised £12.8 million in funding, the majority of which came from early-stage London VC Passion Capital, in addition to an equity crowdfunding round. The most recent £4.8 million “bridge funding,” announced in October, valued Monzo at £50 million.
In addition, it was confirmed that Monzo turned down a substantial acquisition offer from an incumbent bank late last year. Monzo Cofounder Tom Blomfield explained the reasoning for the declined offer, saying: “It’s never just the money, the money comes with strings and they’re really, really onerous … It just stops you taking risks, fundamentally, stops you innovating, that’s the real problem.”
Monzo wouldn’t be the first European FinTech to receive backing from New York-headquartered Thrive Capital. The VC firm, founded by Josh Kushner, recently led a €30 million Series C round for German FinTech Raisin, which offers pan-European savings accounts.