British challenger bank Monzo is set to raise as much as £350 million in a funding round that would value the business somewhere between £3.5-£4 billion as it steers a path towards profitability.
The challenger bank could finalise a deal by the end of the month, people familiar with the matter told the FT.
In November it was rumoured that Alphabet-backed fund Capital G was in talks to acquire a stake in Monzo as part of a funding round that could raise up to £500 million
News of the deal comes as Monzo reports more than nine million personal account customers, making it the 7th biggest retail bank in the UK by customer numbers.
After a rocky post-pandemic, the lender has bounced back strongly, rolling out a series of new services for pension and investment and preparing for a move into the insurance segment. After years of losses, the bank is expecting to finally hit profitability this year.
Monzo last raised money in late 2021, securing $500 million at a $4.5 billion valuation - three times the £1.1 billion price tag it attracted in its previous discounted capital-raise earlier that year.