Alphabet-owned Capital G led the round, which was a reward for driving the bank into profitability. Passion Capital and Tencent, as well as Google Ventures and HongShan Capital, supported the deal.

The last time Monzo raised capital was in late 2021, when it raised $500 million at a valuation of $4.5 billion, which was three times the £1.1 billion it had raised in its last discounted capital-raise that same year.

The transaction was announced as Monzo, the seventh-largest retail bank in the UK based on client volume, reports having over nine million personal account holders.

The lender has recovered well from a difficult post-pandemic period, launching a number of new investment and pension services and getting ready to enter the insurance market. The bank is hoping to turn a profit this year after years of losses.

The CEO of Monzo, TS Anil, states: "Over the past few years, we've built incredible momentum in the business." With support from international investors, we have the extra momentum to pursue our goals more aggressively and quickly, turning Monzo into the one app that powers our users' financial lives.

After Conor Walsh, the former global product head of Cash App, was appointed US CEO last year, the money will be utilized to expand the product roadmap and make a fresh push into the US market.