Monzo, the UK’s largest digital bank, has announced that it has raised £340 million in its latest funding round.

The company said that the funding raise would go towards its expansion plans, with the latest round securing a £4 billion valuation.

The funding round was led by CapitalG and features participation from global tech investors including Google Ventures and HongShan Capital. Existing backers including Passion Capital and Tencent also increased their funding of the company.

TS Anil, chief executive officer at Monzo, said: "We've built incredible momentum in the business over the past few years, leading to us reaching more than 9 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.

Monzo, which serves more than 9 million customers in the UK, is eyeing a return to the US. The company previously attempted to launch in the country, but this plan was curtailed in 2021 when US regulators told the challenger bank that it was unlikely to receive a banking licence. The neobank plans to circumnavigate this challenge by announcing a banking partnership that will allow it to bypass a licence application.

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