UK-based challenger bank Monzo has closed a £60m ($76m) funding round as it grapples with challenges brought about by the Covid-19 pandemic, Business Insider reported.
The funding comes from new backers like Swiss fund Reference Capital and Vanderbilt University.
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Existing backers Y Combinator, General Catalyst, Accel, Stripe, Thrive Capital, Orange Ventures, Goodwater Capital, and Passion Capital also joined the funding round.
The funding round has been sealed at a valuation of £1.25bn ($1.6bn), a 40% discount against its previously announced valuation of £2bn ($2.5bn), the report added.
Monzo is said to be the fastest-growing app-only bank in the UK. It has onboarded nearly 4.2 million customers since it received its full banking licence in 2017.
The latest funding round, which was delayed due to the pandemic, comes after the bank announced its plans to furlough its staff and cut some positions.
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By GlobalDataAccording to Business Insider, the decision to reduce its workforce follows its acknowledgement to reduce costs and mitigate the impact of the virus on its business.
Earlier this month, Monzo said it would cut about 120 jobs, however, it later revised it to 80 jobs.
In March, the challenger bank slashed 295 positions and closed its Las Vegas customer support office which saw another 165 redundancies.
