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Monzo IPO: Everything you need to know

Shares /
Axi Team
Everything you need to know Monzo IPO

According to the latest forecasts, Monzo might not go public until 2024. The neobank has recently been approached by banks eager to handle its IPO, but given the weak market environment, the company does not appear to be in a rush.

Competitor Revolut has delayed its IPO too, and while smaller rivals Atom Bank and Starling Bank also hinted at going public, nothing has materialized yet.

Monzo going public is still one of the most anticipated FinTech IPOs, but investors will have to stay patient for now. As a UK-based bank, it will most likely be listed on the London Stock Exchange (LSE).

 

Monzo company stats

Founded 2015
Headquarters London, United Kingdom
Number of employees 1,600
Revenue 2021 $440 million
Stock Exchange London Stock Exchange
Potential Valuation $4.5 billion

Source: UK Tech News

 

What is Monzo?

Monzo is a UK-based neo-bank, which was founded in 2015 by Tom Blomfield, Jonas Huckstein, Jason Bates, Paul Rippon, and Gary Dolman - all of them previously worked at competitor Starling Bank.

Despite only being eight years old, Monzo has been rapid growth and can boast 5.8 million customers. Monzo´s banking services are accessed by clients through its mobile app, and only limited features are available on the web browser version. Being an online bank, the company does not have any branches.

How does Monzo make money?

Monzo has several streams of income. One is its subscription model. While the basic Monzo service can be accessed free of charge, Monzo Plus is available for a fixed fee of 5 GBP per month. The corporate version - Business Pro - is also available for a monthly fee of 5 GBP.

Like other banks, Monzo also makes money on interest, overdraft fees, issuing consumer loans, and interchange fees (a small fee deducted from the merchant for every transaction executed by a card issued by Monzo).

Who is Monzo´s main competition?

In the UK - Monzo´s main market - the company is competing primarily with Revolut and Starling. Monzo has been lagging behind its competitors when it comes to growth, and it failed to expand to other markets as aggressively as Revolut did.

 

The IPO: When, where and what to expect

Monzo is currently a privately-owned company, with the largest shareholders being its founders and a mix of institutional investors.

After its latest funding round, the neo-bank achieved a valuation of $4.5 billion, making it the third most valuable neo-bank just behind Revolut and N26. For comparison, Revolut is valued at $33 billion, N26 at $9 billion and Starling Bank at $2.98 billion.

Despite posting a loss of 119 million in FY2022, the company also announced an 81% increase in net operating income and a 42% increase in customer deposits. Monzo´s management is expecting to hit breakeven in FY2023.

What about Monzo´s growth plans? The company sees the U.S. as its next big market and has already been available to the public since 2022.

 

3 steps to trade Monzo IPO with Axi

An Initial Public Offering (IPO) is an investor’s first chance to gain exposure to an organisation. An IPO is an important milestone for a company looking to raise capital and an opportunity for investors to get involved in a hopefully growing business.

With Axi you can get exposure to Monzo IPO as soon as it’s listed on a specific exchange and prices from the exchange become available to our liquidity providers.

  1. Login to your live MT4 trading account (sign up with Axi if you don’t have one)
  2. Navigate to market watch, right-click, and select ‘show all’. Search for Monzo.
  3. Choose your position and size and go long or short on share prices. Don’t forget to set risk management tools like a stop loss and take profit order.

 

Sources: Bloomberg

 

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The data is sourced from third-party providers. This information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. It has been prepared without taking your objectives, financial situation, or needs into account. Any references to past performance and forecasts are not reliable indicators of future results. Axi makes no representation and assumes no liability regarding the accuracy and completeness of the content in this publication. Readers should seek their own advice.



Axi Team

Axi Team

The Axi team is full of people with decades of financial industry experience and knowledge of almost every aspect of trading. The Axi team blog, in addition to regular posts from our daily market analysis contributors, is a place to share wider insights and ideas. In this section, you’ll find posts about everything from forex education and helpful hints for new traders to product updates and important market announcements.


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