Monzo has been forced to review its valuation downward. The neo-british bank makes the expense of a market in trouble.
For the first great crisis of their history, the neo-banks have rapidly shown their limits. Between the layoffs, the part-time unemployment, the cuts budégtaires or penalties for the client reviews on the rise, young people are pushing trying to adapt to the fall in consumption.
The VC also seem more discerning in their investments, and it is the whole ecosystem that suffered. While she was in discussions with SoftBank in January to close a mega-round, nugget English-Monzo has since experienced the descent into the underworld.
A trust (shy) investors
A bout de souffle, it comes, however, to raise £ 60 million (67m€) for a valuation decrease of 40%. This last amounted to 1.24 m£ today compared to 2.3 million pounds for the previous round table, in June 2019. Monzo, who was in the habit of sharing his previous fund-raising on his blog, has remained silent this time.
If we don’t know the details of the negotiation, the amount raised is to be lower than what had been announced the source of the Financial Times last may (70 to 80m£). It would, however, issue an additional 40m£, which would be released in the coming months.
The neo-bank has seen its stockholders (Y-Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive and Passion Capital) to deliver a timid hand to the pocket. Reference Capital and Vanderbilt university join the startup, which has raised 173 million Pounds sterling (192m€) since its creation in 2015.
It difficult to monetize its base
With more than 4 million customers to its active, Monzo is one of the most beautiful successes among the neo-banks. She met, however, real difficulties to monetize its customer base. If Revolut and N26 are doing better from this point of view, the two fintech also need to tighten the belt.
After a first failure in 2019, she has wanted to relaunch its payment intended for the general public. Because of the crisis, this project has been delayed. It must comfort himself today with his accounts Business, launched last march, which are already in number of 25 000. It was, however, not allowed to spend the crisis peacefully, and the departure of its iconic CEO has not helped.