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Mobile-only Bank Hits £30m Valuation

Tim Maytom

App-based banking service Mondo has been valued at £30m following a £6m funding round, despite the fact the company is still in its Alpha testing phase and has yet to secure a banking licence for the UK.

The company raised £5m in early stage funding from venture capital fund Passion Capital last year, and has just launched a £1m crowdfunding campaign on Crowdcube, offering consumers a chance to invest in the firm from the ground up.

Speaking to Business Insider, Tom Blomfield, founder and CEO of Mondo, said "We've had literally thousands of people help shape the product and build the bank so far, and many have asked, is it possible to invest? It's a really nice opportunity to give our customers the chance to own a part of the bank they're helping to build."

Mondo has reportedly turned down multiple investors, with funding rounds being heavily oversubscribed, due to a desire to remain independent. As part of the crowdfunding effort, it has capped investment at £1,000 per person, to limit involvement from other large investors.

So far, the company is only in Alpha testing, but has already seen payments made in over 50 countries by its initial batch of 1,500 users, and has 30,000 more on the waiting list. The company is testing using pre-paid cards which are linked to its app, but has applied for a full banking licence, which it believes will be approved by summer this year.