(Bloomberg) -- Monzo Bank Ltd. raised funds that valued the British startup at $5.2 billion, giving it more power to take on rival fintechs in new markets like the US. 

The company raised an additional $190 million from existing investors as part of a so-called top-up round to the $430 million that Monzo raised earlier this year, according to a person familiar with the matter. Investors in this round included Capital G, Alphabet Inc.’s independent growth fund, as well as new investors like London-based venture capital firm Hedosophia, the person said, asking not to be identified discussing non-public information.

“The huge interest we see from global investors is testament to the momentum and strength of our business model,” Monzo Chief Executive Officer TS Anil said in a statement to Bloomberg News. 

Monzo is part of a class of so-called challenger banks that have soared in popularity across Europe in recent years. For the most part, these fintechs offer flashy apps and give consumers the ability to conduct the vast majority of their finances digitally.

For years, Monzo has been looking to expand in the US, where traditional banks like JPMorgan Chase & Co. and Bank of America Corp. continue to dominate. Last year, the company hired Conor Walsh, a former executive at Block Inc.’s Cash App, to lead its business in the US. 

The company previously raised funds in 2021 in a round led by the Abu Dhabi Growth Fund that valued Monzo at $4.5 billion. The Chinese technology giant Tencent Holdings Ltd. took a stake in the company at that time. 

Monzo’s round is the latest sign that valuations of fintech companies are beginning to rebound from the doldrums of last year, when investors grew weary of the industry as higher interest rates hindered the sector’s profitability. For instance, one of Revolut Ltd.’s shareholders thinks the firm is 45% more valuable than a year ago.

Read more: Revolut’s Valuation Raised 45% By Schroders in Fintech Boost 

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