Monzo, a leading UK digital bank, is nearing the completion of a significant fundraising round, anticipated to be close to £500m.

The round includes substantial investments from prominent tech investor Hedosophia and Singapore's Government Investment Corporation (GIC).

This new capital would boost Monzo's valuation to approximately £4 billion, following a prior £340m fundraise.

Hedosophia, known for backing successful companies like Airbnb and Uber, and GIC are contributing over £50m and tens of millions of pounds, respectively.

Monzo, currently profitable and the UK's largest digital bank, may not require additional funds if it opts for an IPO in the forthcoming years.

The bank has not officially commented on the fundraising details, but an announcement is expected imminently.

CEO TS Anil has indicated that Monzo has gained a competitive edge over other fintech challengers such as Starling and Revolut.

Since its inception in 2015, Monzo has grown to become the 7th largest bank in the UK by customer count, serving millions of British customers.