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Neobanks should take heart from Monzo’s performance in 2022


UK-based neobank Monzo has had quite the bittersweet year. The company’s full-year financial results for 2022 paint a picture of a business that’s growing rapidly, though at the cost of sticky, large losses.
However, it’s not all bad news: Monzo has been cash-flow positive since October 2022, and it “reached profitability” after the end of its most recent fiscal year.

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Monzo has been through a few tumultuous years.
When COVID struck, Monzo laid off staff, closed offices, raised a down round and saw founder Tom Blomfield leave the company. After seeing its valuation fall to a post-money price of £1.3 billion in 2020, however, the company bounced back. In late 2021, it raised a $500 million round at a pre-money valuation of $4 billion, providing it with a massive cash injection and raising the value of its efforts many times.
Since then, Monzo has continued to grow, and now that it is both cash-flow positive and profitable, it can fund its own efforts. That puts it in good com …

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