Monese warns on survival in search for new funding

THE scale of the cash crunch facing London's tech sector was laid bare after City-based unicorn Monese warned that its future was under threat unless it could raise additional funds.

The fintech company, which offers current account and money transfer services and counts PayPal, HSBC and British Airways owner IAG among its major shareholders, said there was "material uncertainty on the success of raising future fundraising" which undermined the "going concern" status of the business.

In accounts filed with Companies House, Monese posted a loss of £30.5 million in 2022, an increase of almost 70% on the previous year and outstripping revenues of £27.7 million over the same period.

Since the start of last year, scores of British tech firms, from food delivery business Gousto to semiconductor company Graphcore to fintech giant Revolut, have seen their valuations cut by investors amid demands for tighter cost control and clearer pathways to profitability.