Key investor’s Monzo holding shrinks

MONZO’S biggest investor has reduced its stake in the digital bank.

Passion Capital, one of Monzo’s earliest backers, has seen its holding shrink to 23 per cent, down from 40 per cent at its peak about four years ago. The app-based bank, l aunched i n 2015, has more than five million customers.

Speculation is mounting that the bank is preparing for an IPO, but it is understood there are no immediate plans for any listing – at least over the next year and a half. The bank, founded by Tom Blomfield, 35, is set to post its annual results imminently and investors will be looking for any indication of profitability.

It is hoping to turn a corner after its accounts last year said there was ‘ significant doubt’ over its ability to continue as a going concern. Monzo’s value was also cut by 40 per cent to £1.2 billion.

London- based Passion Capital’s stake has fallen as new investors have come on board. Monzo has raised £ 170 million during the Covid crisis from its backers.