TS Anil gave an interview to The Sunday Times which showed a few bombshells that the media seems to have completely missed. The article by The Sunday Times and other outlets which referenced it seemed to not actually look into what the numbers that he gave meant.
And if you go and dig into those numbers and what they mean, then in my personal opinion based on nothing other than the publicly available data, the future looks very bleak for Monzo.
Behind the never-ending showcases of how many millions of customers they have and the rolling funding rounds that seem to close every few months, Monzo is losing a lot of money and the recent attempts at plugging that hole with paid accounts and lending doesn't seem to be working.
So why is it that everyone seems to be so positive? Why did the journalist not ask any probing questions and why is Monzo, based on their own annual report and the opinion of their own accountants, living a few months from running out of cash?
To me this seems somewhat concerning given that we are talking about a mature company that has already dished out huge amounts of their equity in the funding rounds so far.
How much more equity can they give away and how happy will investors be with being diluted?
Will the bank post another big loss when they release their next Annual Report in June?
When will they begin making any substantial revenue that has a chance of making them break even let alone turn a profit?
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