A Monzo debit card being used at a payment terminal.
British digital bank Monzo said Thursday that its annual losses more than doubled and warned its ability to continue operating had become more uncertain due to the coronavirus pandemic.
The start-up reported an annual post-tax loss of £113.8 million ($149.5 million) in its 2020 accounts, up from the £47.1 million it lost last year, amid investment on hiring, marketing and a. That was despite revenues more than tripling to £67.2 million from £19.7 million.
Monzo lent out a record £143.9 million, compared to £19.2 million in its 2019 results. But it expects credit losses to climb dramatically to £20.3 million from £3.9 million, with £4.1 million of that sum being set aside for a heightened default risk associated with the pandemic.
In a sign of the toll the crisis has taken on some start-ups, Monzo said the disruption resulting from Covid-19 has led to “significant doubt” about its ability to continue “as a going concern.”
“Our revenue streams have been significantly impacted by the COVID-19 pandemic and resulting…