Investor Retrospective · Accel
Investment thesis
Accel believes Monzo is the digital bank that will successfully break out from early adopters into the mass UK retail banking market.
And that means it needs a digital bank which can break out of the niche market of early adopters and into the mainstream. We believe that bank is going to be Monzo
Traction
Monzo demonstrates strong customer engagement, with 60% of users checking the platform weekly and opening the app over 50 times per month.
Their regular engagement with the app is remarkable, with 60% of customers using the platform weekly, and accessing the app more than 50 times per month.
More than 25% of Monzo users deposit their salaries into their Monzo accounts.
Moreover, more than 25% of users are adding their salaries to Monzo.
Monzo has expanded beyond early adopters: 50% of users are female, over 25% are over 40, and 75% reside outside London.
Approximately 50% of current customers are women, while more than 25% are over the age of 40. Three-quarters of its users stem from cities outside of London.
Monzo has acquired over 1 million account holders since launching as an FCA-licensed core banking provider at the end of 2017.
Having attracted over 1 million account holders since its launch as an FCA-licensed core banking provider at the end of 2017, Monzo has tapped into the growing appetite for a new alternative in banking.
Monzo accounts for over 15% of new personal bank account openings in the UK.
By our own estimates, Monzo has accounted for more than 15% of the new personal account openings in the UK, with an annual market of 6-7M new accounts.
Team
Monzo operates with a 400-strong team with strong cohesion, motivation, and operational focus.
The 400-strong team still operates with the focus and cohesion of one 10% that size.
Business model
Monzo is developing a marketplace function to allow customers to manage financial products from both proprietary and third-party fintech providers.
As it develops its marketplace function, Monzo can become a destination app through which customers manage all their financial needs in one place, accessing any number of both proprietary and third-party fintech products.
Investment context
Accel is co-leading an £85M investment round in Monzo alongside General Catalyst.
we’re excited to be co-leading an £85M investment round and backing Tom, who we first worked together with at GoCardless, alongside our longstanding colleague Adam Valkin and our other friends at General Catalyst.
What founders can learn
- The traction evidence that carried weight: Accel wrote that Monzo demonstrates strong customer engagement, with 60% of users checking the platform weekly and opening the app over 50 times per month.
- How the team was judged: Accel wrote that Monzo operates with a 400-strong team with strong cohesion, motivation, and operational focus.
- How the model was assessed: Accel wrote that Monzo is developing a marketplace function to allow customers to manage financial products from both proprietary and third-party fintech providers.
Source and provenance
Investor Retrospective published by Accel on accel.com. Read the original
