British challenger bank Monzo has raised $93 million, or £71 million pounds, in new funding for further investment into its mobile-only banking services. This latest funding places the startup’s valuation at about £280 million pounds.
The goal of the funding round is to make the bank “contribution margin positive,” Tom Blomfield, co-founder and CEO for Monzo, told TechCrunch. In other words, the funding will serve as a way to help the bank start generating revenue from its customers.
Presently, the bank is losing approximately $32 (or £25) per current account customer, with prepaid customers costing the bank even more.
To ease those costs, the bank will be turning to partnerships. Blomfield told TechCrunch:
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We’ll start to roll out some revenue-generating products in the next few weeks and months, particularly lending and third-party partnerships. The next step after that is to become profitable as an enterprise in business… towards the end of 2018 or early 2019.