Fintech Monese aims to secure fresh funding in 2024

Its recently published accounts for the year to 31 December 2022 show that Monese generated revenues of £27.7 million, up from £17.6 million the year before

UK fintech Monese is hoping to attract more funding in 2024 after recording a £30.5 million ($38.82 million) loss over 2022.

Its recently published accounts for the year to 31 December 2022 show that Monese generated revenues of £27.7 million ($35.26 million), up from £17.6 million ($22.40 million) the year before. The company attributes this positive increase to “growth in its active customer numbers” primarily in the UK.

Nevertheless, the rise was offset by its increasing direct costs, which “increased significantly” from £17.2 million ($21.89 million) in 2021 to £26.8 million ($34.11 million) in 2022, as a result of what the filing says were higher customer volumes and customer acquisition costs.

The firm’s administrative expenses also jumped, from £18.5 million ($23.55 million) in 2021 to £31.3 million ($39.84 million) in 2022, largely due to the company further developing its technology platform and expanding its employee headcount, which averaged 349 that year.

Monese ended 2021 with the acquisition of specialist financial services platform Trezeo, followed by the appointment of a new chief product officer in March 2022 and a $35 million investment from HSBC Ventures in September, among other developments.

While this latter achievement sustained Monese through 2023, culminating in the launch of its “coreless” banking platform XYB in May, group founder and Chief Executive Officer Norris Koppel says the company is reliant on access to adequate amounts of new funding to finance its current operations and growth plans.

The company faces the risk that should such funding not be available, the ability of the group to conduct its operations in their present form will be adversely and potentially severely impacted, Koppel adds.

While Monese writes that there is material uncertainty on the success of raising future fundraising and therefore the going concern status of the firm, Koppel adds that the firm’s management believes it will “continue to be successful in obtaining the capital required to meet its future funding needs”.