British neobank Monzo boosts funding round to $610 million to crack U.S. market, launch pensions

cnbc.com:

British neobank Monzo said Wednesday that it's raised another $190 million, lifting the total it's raised so far this year to $610 million.

The company told CNBC it raised the cash from new investors including Hedosophia, a backer of top European fintechs including N26 and Qonto. CapitalG, Alphabet's independent growth fund, also participated in the round.

Singaporean sovereign wealth fund GIC also participated in Monzo's latest fundraise, a source familiar with the matter told CNBC. The source spoke on the condition of anonymity as details of GIC's involvement aren't yet public.

GIC declined to comment.

The latest funding values Monzo at roughly $5.2 billion, an increase on the $5 billion valuation it attained in March when it raised $430 million. The total $610 million round marks the single-biggest funding round for a European fintech in the past year, according to Dealroom data.

TS Anil, CEO of Monzo, told CNBC his firm plans to use the cash to build new products and accelerate its international expansion plans.

«At the heart of it we are a mission-oriented company that's looking to build the single place where people can meet all of their financial needs,» Anil told CNBC in an exclusive interview.

«What's exciting to me is that, as we pursue that mission of changing people's relationship with money, we've built a business model that is congruent with that as well, with this model that is built entirely around the customer.»

Monzo entered the black for the first time last year, hitting profitability following the end of its 2023 fiscal year. Anil said Monzo's looking to ramp up profits with diversification into other income generators, like lending and savings.

Notably, Anil said that Monzo's planning to launch its