Monzo is reportedly planning a new funding round that would see its valuation increase to around £4 billion.

The British neobank could raise up to £350 million within the next fortnight, people familiar with the matter told The Financial Times.

The report said that Monzo would be worth £3.6 billion on a pre-money basis and £4 billion with the fresh capital.

According to the newspaper, Alphabet investment fund CapitalG will lead the fundraise, while Tencent, Ribbit Capital, and HongShan will also join the round.

Monzo declined to comment.

The news comes days after Monzo announced it had reached over nine million customers, with two million joining the digital banking platform last year.

Monzo said that the vast majority of this growth has been driven by word of mouth referrals and a string of product launches including Investments, Instant Access Savings and Cashback.

The bank describes itself as the UK’s largest digital bank and the 7th biggest retail bank in the UK by customer numbers.

Last year, Monzo announced it had reached profitability after recording a near doubling of profits in the year ended February.

It also recorded a 42 per cent increase in losses to £100 million.

In 2021, Monzo reached a £3.5 billion ($4.5 billion) valuation after a funding round led by the sovereign wealth fund Abu Dhabi Growth Fund according to the newspaper. Coatue, Alpha Wave Ventures, Accelm and Goodwater also joined the funding.

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