China's Tencent builds stake in UK digital bank Monzo

China's Tencent builds stake in UK digital bank Monzo
China's Tencent builds stake in UK digital bank Monzo   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p> – Chinese gaming and social media company Tencent Holdings Ltd has taken a small stake in Britain’s Monzo as part of a fundraising, the digital bank said on Friday, just weeks after it fetched a valuation of $4.5 billion.</p> <p>Monzo did not disclose details of Tencent’s stake, but Sky News earlier on Friday reported that the Chinese firm was investing a minority of a $100 million capital injection, citing a source close to the process. </p> <p>Tencent did not immediately respond to a Reuters request for comment. </p> <p>Founded in 2015, Monzo is a high-profile neobank with more than 5 million customers but has struggled to turn a profit, with annual losses widening last year as it disclosed it was facing a potential civil and criminal money laundering probe. </p> <p>Earlier this month, Monzo received funding from investors such as Abu Dhabi Growth Fund and Coatue. </p> <p>Tencent holds stakes in major U.S. tech companies, including electric-car maker Tesla Inc and photo-messaging app maker Snap Inc.</p> <p/> </div>