Fintech/News/ Monzo revenues surge more than twofold, putting it on track for 2023 profitability It’s a sharp turn of fate for the fintech, and a sign that Europe’s neobanks may finally be learning how to convert app downloads into revenue By Amy O'Brien 30 January 2023 TS Anil, Monzo's CEO TS Anil, Monzo's CEO \Fintech Sequoia-backed fintech Two raises €18m Series A By Mimi Billing 21 March 2023 Fintech/News/ Monzo revenues surge more than twofold, putting it on track for 2023 profitability It’s a sharp turn of fate for the fintech, and a sign that Europe’s neobanks may finally be learning how to convert app downloads into revenue By Amy O'Brien 30 January 2023 UK digital bank Monzo experienced record revenue growth in 2022, setting it on course to achieve annual profitability by the end of 2023, according to an investor update seen by Sifted. Annualised revenues shot up 250% to £440m in the twelve months to December 2022 — a huge uptick from the 92% revenue growth to £154.2m that the neobank reported for the year to February 2022. Monzo now expects to break even this year — achieving a status that has, up until now, been extremely rare among Europe’s neobanks. The bank has been “cashflow positive” — ingoings have outpaced outgoings — since October 2022, according to the investor update. The neobanks grow up Rival Starling became the first European neobank to hit annual profitability in July last year, after revenue grew 93% thanks to a surge in lending. Meanwhile, Revolut CEO Nik Storonsky recently told Sifted that his fintech has been profitable for two years — a claim we’re having to wait to validate, since Revolut missed its deadline for filing accounts twice. Monzo’s revenues are much more reliant on the usage of its famous coral pink cards. It recently hit 7m UK customers, putting it streaks ahead of its peers; Starling has 3.5m UK customers and Revolut has 5.75m. Monzo said its personal account sign-ups averaged at 150k a month in 2022. The comeback kid It’s a sharp turn of fate for Monzo, whose auditors expressed “material uncertainty” over its ability to survive as a business as a going concern in its 2020-21 annual results. Since then, Monzo has almost doubled its customer numbers in the UK, from 3.9m in February 2020 to 7m today. As central banks have continued to hike interest rates, UK retail banking customers switched banking account providers at a record rate in the final quarter of 2022, according to data from the Current Account Switch Service. After Santander and HSBC, Starling was the UK retail bank that logged the highest net switching gains at 9,070 switches, followed by Monzo with 6,030. Amy O’Brien is Sifted’s fintech reporter. She tweets from @Amy_EOBrien and writes our fintech newsletter — you can sign up here. Related Articles Exclusive: Revolut appoints 29-year-old Yale graduate as CFO By Isabel Woodford Click here to read more Seven OakNorth power-players pulling the strings behind the scenes By Sam Shead Click here to read more Exclusive: Wirecard UK to be bought by Railsbank after downfall of parent company By Isabel Woodford Click here to read more Czech restaurant payment app Choice QR raises €1.5m to take on Sunday By Zosia Wanat Click here to read more Most Read 1 \Startup Life UK government to reform ‘equity for visas’ residency application system 2 \Fintech Is Revolut really worth $33bn right now? 3 \Startup Life Techstars unexpectedly pulls out of Sweden mid-programme 4 \Deeptech The other funding gap: it’s not just unicorns that are leaving Europe 5 \Deeptech ‘There’s going to be a bloodbath’ — is generative AI a bubble?