Monzo Hopes To Break Even In 2023 With 7 Million Subscribers

The neobank told the people who backed it on Crowdcube that its annualized revenue reached £440 million in December 2022.

Monzo has told its tens of thousands of retail investors that it thinks the neobank will break even in 2023. Since October 2022, the bank has been making money every month.

In a Crowdcube investor update, the news was shared with the 47,677 people who have backed the fintech in four crowdfunding rounds since 2016.

Monzo’s last annual report, for the year ending in March 2022, showed that its loss had shrunk to £119 million, down from around £130 million in 2021.

In the update, Monzo said that it expected to be profitable and that its annualized revenue in December 2022 was £440 million, which was about 2.5 times more than the year before.

Monzo didn’t say which products helped its revenue grow, but it did say that over 350,000 people are now on its £5/month Monzo Plus or £15/month Monzo Premium plans.

It also showed that more than 200,000 businesses bank with Monzo, and it’s likely that some of them pay £5/month for Monzo’s Pro business account.

Overall, the bank now has 7 million customers. On average, 150,000 new customers sign up for the bank every week, which makes it the seventh largest bank in the UK in terms of customer numbers.

Finally, Monzo hinted at its upcoming “investments” service. We first heard about this in January 2022, when the neobank posted a job ad for a “general manager, Investments” to “build and run Monzo’s most exciting new business: investments and wealth.”

In the Crowdcube investor update, Monzo explained: “It’s no secret that we’ve been working on an investments product.”

“Customer research showed there’s an unmet need for simple and easy-to-understand investment services and we’re hoping to do something about that. We’ll keep you posted as things develop so watch this space!”