Chinese gaming and social media company Tencent Holdings has taken a small stake in the UK’s Monzo as part of a fundraising, the digital bank has said, just weeks after it fetched a valuation of $4.5 billion.
Monzo didn’t disclose details of Tencent’s stake, but Sky News earlier reported that the Chinese firm was investing a minority of a $100 million capital injection, citing a source close to the process.
Tencent didn’t immediately respond to a request for comment by journalists at our partner news agency, Reuters.
Founded in 2015, Monzo is a high-profile neobank with more than 5 million customers but has struggled to turn a profit, with annual losses widening last year as it disclosed it was facing a potential civil and criminal money laundering probe.
Earlier this month, Monzo received funding from investors such as Abu Dhabi Growth Fund and Coatue.
Tencent holds stakes in major US tech companies, including electric-car maker Tesla and photo-messaging app maker Snap.
The team at Platform Executive hope you have enjoyed the article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Priyanshi Mandhan in Bengaluru.
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