Chinese tech giant Tencent has taken a small stake in Monzo as part of a $ 100 million complement to the $ 500 million financing round recently announced by the British challenger.
Monzo baffled marketwatchers in December by raising more than $ 500m at a valuation of $ 4.5bn – three times the price of £ 1.1bn he drew in his latest capital raise at a reduced price earlier in the year.
The funding comes as Monzo appears to be on the edge of a new growth curve, doubling revenue last year and signing around 100,000 new customers per month. The bank has more than five million customers, including 300,000 using paid accounts, with business accounts recently exceeding 100,000.
Abu Dhabi Growth Fund led the first round, with participation from Coatue and Alpha Wave Ventures, Accel and Goodwater.
Tencent’s entry was cut short by Sky News, which reports from sources familiar with the process that the Chinese company is investing a minority of the $ 100 million capital injection.
Tencent has a growing fintech portfolio, with investments in Argentine personal finance app Ualá, digital wealth manager Scalable Capital, French startups Qonto and Lydia, and challenger banks such as German N26, Brazilian Nubank and Tyme from South Africa.