Amid a period of rapid growth for Monzo, the banking challenger app is in talks to sell a stake to Singapore’s Government Investment Corporation (GIC), according to Sky News.
The UK media outlet reported today that the stake could be sold to the Singapore state-owned sovereign wealth fund in the coming weeks, following a recent valuation of Monzo which put the firm’s worth at $5bn.
Alongside fellow neobank Revolut, Monzo stands out as one of the biggest success stories in the UK’s extensive network of fintech startups, having gone from strength to strength since launching back in 2015.
The London fintech surpassed a significant milestone earlier this year when it recorded over nine million customers, of which two million had joined the company in 2023 alone. It has also experienced success as a product for businesses, recording over 380,000 business accounts.
Commenting at the time, TS Anil, Monzo CEO, said: “To have more than nine million customers open a Monzo account, largely via word of mouth, is testament to the magic of Monzo and the customer-centricity that is part of our DNA.”
Having reached profitability and amassed a significant customer base nine years after its foundation, Monzo has become somewhat of an investment magnet, repeatedly securing funding from some high level organisations.
In a funding round at the start of this month the company was able to raise $430m, with investment coming from CapitalG, an independent growth fund of Google parent company Alphabet, as well as HongShan, Tencent and Passion Capital.
This led to the firm’s valuation reaching the aforementioned $5bn mark. Additionally, this is significant as Sky had previously reported that Alphabet was pursuing investment in Monzo, which this month’s funding round proved to be true.
Should the outlet’s City sources prove correct once again it would mark a continuation of significant momentum for Monzo by gaining financial support from one of the world’s biggest sovereign wealth funds. Capital will likely be used to support its growth ambitions both in the UK and further afield.
