British digital lender Monzo is reportedly planning to raise at least £300m in new funding to strengthen its balance sheet.
According to a Sky News report, the fintech is currently in talks with several investors to raise the money. The report added that the funding will value Monzo at around £3bn, a big jump from its previously announced valuation.
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Monzo expects to secure around £200m from new shareholders and the remaining from existing backers.
US-based advisory firm FT Partners is working with Monzo on the potential funding round.
However, Monzo declined to confirm the development.
The report comes just weeks after Monzo withdrew its application for a banking licence in the US. The decision was taken following nearly two years of engagement with the regulatory authorities.
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By GlobalDataHowever, Monzo will not completely cease its operations in the US. Instead, it plans to expand the US venture through its current partnership with Sutton Bank.
Recently, the challenger introduced a service that will enable customers to make card payments in instalments. Monzo aims to establish its footprint in the growing buy now pay later (BNPL) market.
In the year to February 2021, the company reported a pre-tax loss of £130m, which is 13% more than the previous year.
The performance was affected by the Covid-19 pandemic.
