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The board of British digital banking powerhouse Monzo remains divided over the location of its potential market listing, with chief executive TS Anil leaning towards a US debut that could value the firm at £4 billion. This strategic choice could deliver yet another setback to the London Stock Exchange’s ambitions to retain high-growth technology companies.
Sources close to the matter indicate a split within the company’s leadership, as several board members advocate for a London listing. The deliberation comes after Monzo’s triumphant first annual profit announcement, marking a significant milestone in its decade-long journey.
The digital bank’s financial performance has been remarkable, transforming a £116.3 million pre-tax loss in 2023 into a £15.4 million profit for the 13 months ending March 2024. The company’s gross revenues witnessed an impressive surge, more than doubling from £355.6 million to £880 million, whilst customer deposits expanded by 88 per cent to reach £11.2 billion.
The fintech secured substantial backing from Alphabet’s investment division last year, alongside investments from Chinese ventures HongShan and technology giant Tencent, culminating in a £4 billion valuation. Under Anil’s leadership since 2020, Monzo has pursued its vision of becoming a comprehensive financial control centre for its 10 million customers.
The potential US listing aligns with industry trends, as fellow fintech leader Revolut’s co-founder Nik Storonsky recently questioned the rationality of a London listing, citing concerns over market liquidity. The possible departure of Monzo to US markets would intensify pressure on London’s financial centre, which has already witnessed several companies redirecting their primary listings to New York.
Whilst Monzo’s representatives have declined to comment on the speculation, the decision could significantly influence the future landscape of British fintech listings and the broader competition between London and New York as preferred destinations for technology company flotations.
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