Monzo grabs new £4.8m round from Passion Capital

UK challenger bank Monzo has raised £4.8m in what it’s calling an ‘interim’ funding round led by Passion Capital.

The investment reportedly values the firm at £50m and comes two months after the company said it would raise as much as £15m to satisfy regulators and receive a full banking license.

The London-based startup was formerly known as Mondo and currently holds a restricted banking license for its app-only service.

The restrictions include only allowing the firm to hold a maximum £50,000 ($65,000) in total deposits until it has properly tested its systems with live payments networks.

Monzo plans to launch a full current account next year but presently offers prepaid cards that it says have seen more than £45m spent on the 50,000 in circulation.

The funding brings the company’s total to £12.8m with Passion leading its £5m February round.

Monzo raised £1m through an equity crowdfunding campaign on Crowdcube that reached its target in 96 seconds.

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