UK-based digital lender Monzo has achieved a valuation of $4.5bn following a $500m funding round, which was led by Abu Dhabi Growth Fund.

The round saw participation from new investors Coatue and Alpha Wave Ventures and existing shareholders Accel and Goodwater, Financial Times has reported.ho

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“This round comes off the back of a fantastic year for Monzo. We’ve seen record revenues, launched new products and tools, and continued to top the charts for our services. We’ve hired some incredible talent,” Monzo chief executive TS Anil was quoted by the publication as saying.

The digital lender has recorded a surge of over 200% in its valuation, which had tumbled due to the pandemic as its losses widened to £130m in 2020.

It was also forced to slash 120 jobs in June 2020.

Founded in 2015, the lender claims to have reached five million customers, with nearly 100,000 customers joining every month.

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As per the report, the lender is working on its market strategy along with new product offerings such as buy-now-pay-later, investing services for retail customers and possibly cryptocurrencies.

Earlier, the digital lender came under the British regulator’s lens for a potential breach of money laundering regulations.

At the time Monzo said: “This investigation is looking into both potential civil and criminal liability. This could have a material negative impact on our financial position, but we won’t know when or what the outcome will be for some time.”

Most recently, the UK-based lender revealed that it has withdrawn its application for a banking license in the US.