Monzo has raised 430 million US dollars (£340 million) in a fresh funding round which has lifted the value of the business, as it looks to boost its growth plans.
The UK digital bank, which has more than nine million customers, revealed that the latest fundraise values it at five billion US dollars (£3.9 billion).
It was last valued at 4.5 billion US dollars (£3.6 billion) in 2021.
The funding round was led by CapitalG, a growth fund led by global technology giant and the owner of Google, Alphabet. CapitalG has helped fund the growth plans of companies including Airbnb, Duolingo, and financial firm Stripe.
Monzo said it wants to use the cash to speed up its expansion, which could involve entering new markets and launching new products.
About two million customers joined the bank in 2023 and it revealed it became profitable a year ago and expects to deliver its first ever annual profit.
It is set to target growth in the US market having decided to withdraw its application for a banking licence in the country in 2021, when it was told it was unlikely to be approved.
Monzo currently works with a partner bank in the US and last year appointed a chief executive to head up operations in the region, where customers can access features including joint accounts and “Pots” to manage money.
Chief executive TS Anil said the bank has “earned the right to dream bigger and invest in the US”, according to a report in the Financial Times.
He also hinted at expansion in other European markets where there is an opportunity to win over dissatisfied customers.
The bank said that other investors to participate in the fundraise include Google Ventures and Chinese investment firm HongShan Capital, as well as existing backers including Passion Capital and Tencent.
Mr Anil added: “We’ve built incredible momentum in the business over the past few years which has led to us reaching more than nine million customers, turning profitable and launching even more ground-breaking products.
“With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers’ financial lives.”