Monday 24 September 2018

Stripe contributes to £71m funding drive for app-only banking alternative Monzo

Patrick and John Collison of Stripe
Patrick and John Collison of Stripe
Louise Kelly

Louise Kelly

Payments firm Stripe, established by Irish brothers Patrick and John Collison, has contributed to the latest funding round for digital challenger bank Monzo.

Since the app-only UK bank was founded in 2015, nearly half a million have signed up to avail of its service, a number the firm states is increasing by 5pc every week.

John (26) and Patrick (28) Collison went from being highly gifted students to paper billionaires in just a few short years, and it looks like they're willing to back the potential of other innovative firms.

The brothers each own around 12pc of the business Stripe, giving them a net worth of over $1bn each.

"We’re excited to announce we have closed our latest fundraising round, raising £71m from Goodwater Capital, Stripe and Michael Moritz," a statement from Monzo read.

"They join our existing investors Passion Capital, Thrive Capital and Orange Digital Ventures, who have each made follow-on investments".

In July, the Collison brothers unveiled a partnership deal with two of China's biggest digital payment services, giving it access to hundreds of millions of Chinese customers. Stripe currently has users in more than 100 countries, including Asia.

This year has been a busy one for Monzo, who have gained a full banking licence and have started to roll out their full current account.

"This is an incredible endorsement of our strategy so far, and we’re so excited about the opportunities this investment unlocks," the company said.

"Ultimately, this means we can continue the growth we’ve seen so far into 2018 and build on our mission to bring Monzo to as many people as possible, in the UK and beyond." ️

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