One of the UK’s fastest-growing digital challenger banks is now valued at more than £1 billion after securing a fresh capital injection from investors.

Monzo’s £85 million series E fundraising was led by US venture capital firms General Catalyst and Accel. Existing backers Passion Capital, Goodwater, Thrive Capital, Orange Digital Ventures and Stripe also contributed to the round.

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Led by founder and CEO Tom Blomfield, Monzo announced just last month that it had surpassed one million users across the UK.

It also published a number of other milestone statistics, including that people had spent more than £4 billion using their Monzo cards so far.

The app-only bank currently employs 450 people but has plans to double that to 900 in the next year.

Monzo is also planning to raise an additional £20 million through a crowdfunding campaign later this year, which will be open exclusively to its customers through the bank’s app.

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Fellow challenger bank and rival Revolut announced in April this year that its valuation had reached $1.7 billion after raising $250 million in funding.

In July, it revealed that it had surpassed one million UK users.

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