Monzo, the U.K. challenger bank with more than 4 million customers, has actually confirmed it has actually closed ₤ 60 million in top up funding.

Backing the round are existing financiers Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive, Passion Capital, in addition to new financiers Recommendation Capital, and Vanderbilt University.

Among fintech’s worst kept secrets, the down round sees the bank take a 40% hit in its paper pre-money appraisal compared to its previous round, now priced at ₤ 1.24 B.

That’s likely a reflection of the existing funding environment in the middle of the coronavirus crisis, with Monzo needing to raise a bridge round at rather possibly the worst time.

I likewise understand from sources that a variety of Monzo’s later stage investors played hardball, in a bid to force down the challenger bank’s ticket rate, possibly after investing at the height of the funding market pre-COVID-19. What is also interesting about the new round is that the share cost is the exact same as the bank’s last equity crowdfund, meaning that the most recent armchair financiers haven’t seen a paper loss.

Monzo is also disclosing that its service banking product has actually now reached 25,000 signups. Launched officially in March, the business checking account is aimed at sold smes and traders, with both complimentary and exceptional paid-for versions readily available, providing numerous feature sets.

It has been a rough time for Monzo, as it, along with lots of other fintech companies, tries to insulate itself from the coronavirus crisis and resulting financial decline.

Planned layoffs in the U.K. were communicated internally previously this month– as much as 120 now believed to be around 80. It followed earlier U.S. layoffs and the shuttering of its Las Vegas-based consumer assistance workplace, and nearly 300 U.K. staff being furloughed.

Like other banks and fintechs, the coronavirus crisis has actually resulted in Monzo seeing consumer card spend reduce in the house and (obviously) abroad, implying it is producing significantly less profits from interchange charges. The bank has likewise postponed the launch of premium paid-for consumer accounts, one of only a handful of known scheduled income streams, along with financing, of course, and the more recent service banking.

Individually, in May, Monzo co-founder Tom Blomfield revealed internally that he was stepping down as CEO of the U.K. challenger bank to take up the freshly created function of president. His replacement is present U.S. CEO, TS Anil, who now likewise holds the title of “Monzo UK Bank CEO,” subject to regulatory approval.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.