Swedish VC Kinnevek has written off its investment in Monese, adding to the financial woes of the mobile money transfer startup.
Kinnevek says the write down reflects more careful investee expectations and multiple contraction relative to public comparables.
"We have sought to make large write-downs or write-offs in our portfolio’s long-tail of companies where our conviction has come down. In this quarter, that encompasses a full write-off of Monese."
Kinnevek led a $60 million Series B round in Monese in 2018 and owns 20% of the company.
States the firm: “While there is still significant value in the company, the nature of our participation in its future is uncertain. This is what underpins our decision to write off our investment in full.”
London and Tallinn-based Monese targets expats and immigrants who typically struggle to get a traditional bank account.
The firm in January booked a £30.5 million loss in accounts filed for 2022 and warned of its ability to continue as a going concern unless it can raise additional funds.
The group last raised equity funding of £42.3m with the final round of its Series C funding in January 2022, bolstered by a $35 million strategic investment from HSBC in September 2022.