BritishSoldier: BritishSoldier: guess I’m not quite sure why Monzo needs an additional £20,000,000! Can someone tell me?

Sure thing

Right now, we’ve just reached per-customer profitability. Meaning that, for each new customer, we’ll make a small amount of money. This is a very recent milestone, and up until that milestone, we were actually losing money per customer.

However, even though we’re now profitable per customer, we aren’t profitable yet as a company when you account for fixed costs - salaries and offices etc! And it’ll still be a while before we get there!

That said, bar any kind of unlikely catastrophic failing, we know that we’re on track to get there, but we’ll need more capital to do it. We’ll need lots more employees (most notably in engineering and COps), we’ll need bigger spaces to accommodate those staff in places (at different times, depending on location - Cardiff is already planning a move, Vegas will need a move likely sometime in 2019 as well).

So essentially we’ll be continuing to grow our business, in every section from COps to Product to Marketing and everything else. This will attract more customers, give us the required runway to keep growing and operating, and allow us to start looking into things like market expansion (although to actually launch in another market, we’d likely need to do another investment round after this one).