Mobile banking startup Monese has reported a loss of £30.5 million in its accounts for 2022 and has raised concerns about its ability to continue operating unless it secures additional funding.
Based in London and Tallinn, Monese focuses on serving expats and immigrants who often face challenges in obtaining traditional bank accounts. According to its filings with Companies House, the fintech company’s losses have increased by 70% compared to the previous year, reaching £30.5 million. Meanwhile, its revenue grew to £27.7 million, up from £17.6 million in 2021, while expenses also rose significantly to £26.8 million from £17.2 million in the prior year.
A portion of the increased costs can be attributed to a strategic shift towards providing a core banking platform service for institutional clients. This service, named XYB, is offered as a technology subscription and includes options for operational support such as onboarding and customer assistance.
The financial statement includes a cautionary note, emphasizing the company’s dependence on securing sufficient new funding to sustain its operations and future growth. It states, “The group faces the risk that should such funding not be available, its ability to conduct operations in their current form could be adversely and potentially severely affected.” The directors highlighted that the company’s status as a going concern hinges on obtaining funding and meeting business performance forecasts.
Monese last raised equity funding—amounting to £42.3 million—during its Series C funding round in January 2022, which was complemented by a $35 million strategic investment from HSBC in September 2022. The company’s directors expressed a “reasonable expectation” that they will successfully raise additional funds and noted that they “have access to adequate resources to fund operations for at least twelve months.”