Monzo close to deal with Alphabet for up to £500m funding round: report
Alphabet, the parent company of Google, is reportedly in talks to acquire a major stake in digital bank Monzo in a boost for Britain’s fintech sector.
Sky News reported that Alphabet’s investment fund, Capital G, was closing in on a deal to lead a funding round to raise between £300m and £500m for Monzo, which would also include other new and existing investors.
Unnamed sources said the deal would likely value Monzo, which is expected to pursue a public listing, at more than £4bn.
Some of Monzo’s existing shareholders are reportedly keen to invest more money at this new price, which would make it one of Britain’s most valuable digital banks.
Its existing investors include Chinese conglomerate Tencent, General Catalyst, Accel and Passion Capital.
Capital G has to date invested around $4bn (£3.2bn) into 55 companies, more than a dozen of which have subsequently gone public.
Monzo was founded in 2015 and has become one of Britain’s biggest digital banks, alongside Starling and Revolut.
The firm reported a £116m loss in the year to the end of February but is forecast to swing to a profit this year.
It has grown a presence in the US and recently launched an insurance business with star entrepeneur Phoebe Hugh at the helm.
Monzo declined to comment when approached by City PM, while Alphabet did not respond.