Unlock the Editor’s Digest without spending a dime
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
Monzo has reported annual revenues of greater than £1bn for the primary time and a steep rise in earnings, however performed down hypothesis of an imminent preliminary public providing.
The London-based fintech reported pre-tax revenue of £60.5mn for the 12 months to March, slightly below 4 occasions its earnings a 12 months earlier.
Since launching within the UK greater than a decade in the past as a digital challenger financial institution to tackle the nation’s conventional high-street lenders, Monzo has attracted greater than 12mn private and enterprise clients.
The corporate added 2.4mn new clients in its newest monetary 12 months, and revenues elevated 48 per cent to £1.2bn. Buyer deposits rose 48 per cent to £16.6bn.
Monzo is likely one of the UK’s highest-profile fintechs, and final 12 months secured itself a $5bn valuation in a fundraising led by Alphabet’s funding fund CapitalG.
The Monetary Instances reported in January that Monzo, which can be backed by Tencent, had been holding preliminary discussions with bankers in an effort to get “IPO prepared” by the top of this 12 months.
Nevertheless, on Monday, chief government TS Anil stated it was “too early for us to speak about an IPO”.
He added: “We’d make an ideal public firm someday and we’re effectively on the trajectory to try this once we select to however it isn’t one thing that we’re centered on proper now.”
Turmoil in public markets has compelled many firms to place their IPO plans on maintain, together with purchase now, pay later group Klarna, which had filed for a list within the US.
Monzo was “oriented to scaling our enterprise”, Anil stated. The corporate is in search of to broaden into Europe, beginning with Eire, and continues to construct out its enterprise within the US.
The fintech withdrew its utility for a US banking licence in 2021, however Anil has since laid out ambitions to re-enter the nation — this time through a banking partnership that might permit it to bypass a licence utility.
“We’re excited concerning the US as a result of it’s a large market and it’s a market that we really feel really wants a Monzo,” stated Anil.
Monzo’s board had been debating whether or not to pursue a list in New York or London, the FT beforehand reported, with Anil pushing for a US IPO to be thought-about.
Through the monetary 12 months, the corporate’s highest-paid director obtained virtually £12mn in contrast with £1.7mn in 2024. Anil declined to determine the director.
The corporate additionally stated in its annual outcomes on Monday that an investigation by the UK’s Monetary Conduct Authority was “more likely to have a monetary price” to the enterprise, however didn’t put a determine on the potential legal responsibility.
The FCA launched an investigation into Monzo in 2021 on potential breaches of guidelines on anti-money laundering and monetary crime methods and controls. Anil declined to remark additional through the media name.
