Monzo, a longtime cool kid in the U.K. challenger bank club, is looking to get out of a Covid-related slump, reporting £114.8M (around $159M) in pre-tax losses last year. Its annual report said “material uncertainty over our ability to continue” is an ongoing concern.

Why should we care?
Monzo’s executive team says the company is likely to incur more losses in the short term, and the company’s revenue patterns are “failing to see ‘hockey stick’ revenue growth,” one analysis said. The company is also being investigated by U.K. regulator the Financial Conduct Authority over failings in anti-money laundering controls. Monzo’s annual report, however, has some bright spots. The company says revenue is now double that of April 2020, and 30% higher than pre-lockdown levels. In addition, Monzo, which has £3.1B in deposits (around $4.3B) – a 124% increase year-over-year – says it’s on track to become profitable next year. An IPO is also in the cards, CEO TS Anil recently said, alongside another fundraising round later this year. “Our business plan focuses on customers using Monzo more, our subscription and lending products, and includes further fundraising to support our growth,” said Gary Hoffman, chair of the board of directors at Monzo. “While the current economic environment continues to challenge our model, we fully believe we can reach our goal of ongoing profitability.”