App-only bank Monzo is now worth over £2bn, just eight months after hitting a valuation of £1bn.
The fresh milestone came on Tuesday as Monzo announced it had raised £113m at the new valuation. Monzo last raised money in October 2018, when it was valued at £1bn.
The new valuation makes London-headquartered Monzo one of Europe’s most valuable private tech companies.
Most of the new money raised came from Y Combinator Continuity, a venture capital fund that grew out of legendary Silicon Valley company incubator Y Combinator. Other funds involved in the investment round include Latitude, General Catalyst, Stripe, Passion Capital, Thrive, Goodwater, Accel, and Orange Digital Ventures.
“It’s so exciting when amazing investors back our mission to transform banking and make money work for everyone,” Monzo CEO Tom Blomfield said in a statement.
“With more than two million customers we’ve come a long way since we started but there’s still a lot more to be done — by listening to our community we’ll keep working hard to deliver the products our customers need to give them better control of their finances.”
Monzo, known for its iconic “hot coral” debit cards, was founded as an app-only bank in the UK in 2015. It has grown rapidly and Blomfield recently told Yahoo Finance UK Monzo is on track to sign up 250,000 new customers this month.
The company said it will use the fresh funds to fuel further growth. Monzo recently announced plans to expand to the US.
“The team is well on their mission of building the best bank in the world, while simultaneously scaling revenue rapidly and sustainably,” Anu Hariharan, YC’s Continuity Partner, said in a statement.
“Ultimately, I think everyone in the world, not just the UK and the US, is going to shift to digital banking,” Blomfield told Yahoo Finance UK earlier this month. “In 10 or 20 years, I honestly don’t see the role of branches. The last time I booked a flight, I didn’t go into a travel agency, whereas 20 years ago that’s what everyone did.
Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut.