The negotiations involve blue-chip investment funds for a share sale which could boost Monzo’s valuation beyond £3.5 billion. Although the specifics of the deal and the potential investors are yet to be confirmed, the agreement is expected to be sealed by year’s end, Sky News reports.

The upcoming fundraising is said to be at a premium compared to the £3.5bn secured from Abu Dhabi Growth Fund in 2021. This contrasts with the prevalent tech funding market trend where companies often secure capital at heavily discounted rates.

This funding is likely the precursor to an anticipated initial public offering (IPO) for Monzo, which was founded in 2015.

Current investors, including Tencent, Passion Capital, Accel, and General Catalyst, are reportedly eager to increase their stakes given the bank’s upward valuation trajectory, Sky News reports.

Presently, Monzo ranks as the UK’s seventh-largest bank in terms of customer numbers and has begun establishing its footprint in the US.