Digital challenger bank Monzo has is set to expand after raising £71 million in its largest fundraising round to date.

The London-based firm secured the investment from US venture firm Goodwater Capital, FinTech firm Stripe and renowned Silicon Valley investor Michael Moritz, who backed Monzo through his charitable investment vehicles including the Crankstart Foundation.

Existing backers Passion Capital, Thrive Capital and Orange Digital Ventures have each made follow-on investments.

The online-only bank has also reserved £1.5m of the round for its existing crowdfunding investors.

“This is an incredible endorsement of our strategy so far, and sets us up to continue the growth we’ve seen this year into 2018," said co-founder and chief executive Tom Blomfield.

He added: "To help us achieve our ambition, we will continue to hire talented people, focus on building the best product, and bring Monzo to as many people as possible."

In a blog post announcing the deal, Monzo described the last year as "incredible", during which it grew its customer base from less than 100,000 people to almost 500,000, gained a full banking licence and started to roll out its full current account.

Monzo is also planning to launch a new equity crowdfunding campaign in 2018.

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