(Bloomberg) -- Monzo Bank Ltd. said a secondary share sale that allowed the company to give employees liquidity for their stakes valued the company at $5.9 billion.
Existing investors including StepStone Group Inc. and Singapore’s sovereign wealth fund GIC Pte participated in the round, according to a statement. The company didn’t disclose how much equity employees chose to sell during the round.
“It’s great to be able to provide employees with some liquidity, while meeting further investor demand for Monzo equity,” Chief Executive Officer TS Anil said in the statement.
The new valuation is up from the $5.2 billion valuation it received after it raised $610 million earlier this year. Monzo is part of a class of so-called challenger banks that have soared in popularity across Europe in recent years. For the most part, these fintechs offer flashy apps and give consumers the ability to conduct the vast majority of their finances digitally.
The move comes just weeks after rival Revolut Ltd. allowed employees to offer up their shares in a secondary offering. That round valued Revolut at $45 billion, up from a $33 billion price tag that the fintech garnered in 2021.
Klarna Bank AB — another darling on the European fintech scene — has also held early talks with investors to gauge their interest in buying up existing shares of the company on the secondary market.
One in five adults across the UK now bank with Monzo, which has more than 10 million customers. The company is planning to expand into Europe via a gateway in Ireland and it’s also investing in its US arm.
“The valuation we have achieved and the strong investor interest it reflects is a huge endorsement,” Gary Hoffman, chairman of Monzo, said in the statement.
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