The CEO of $2.5 billion Monzo will forgo his salary for 12 months to weather the coronavirus

Noam Galai/Getty Images for TechCrunch

Monzo cofounder Tom Blomfield.

• UK challenger bank Monzo is taking steps to shore itself up against the economic downturn brought on by the coronavirus outbreak.
• CEO Tom Blomfield will forgo his salary for 12 months, according to a memo seen by TechCrunch.
• Management and board members have also taken a 25% pay cut, and the $2.5 billion company is offering optional paid furlough to hundreds of employees.
• Visit Business Insider's homepage for more stories.

The CEO of British challenger bank Monzo has decided to go without his salary for a year to help the company deal with the economic downturn brought on by coronavirus.

The news was first reported by TechCrunch.

It is understood that Blomfield will forgo his salary for 12 months, while Monzo's senior management team and board will take a 25% pay cut.

The company is also offering two months of voluntary paid furlough to up to 295 employees (175 for employees in customer support and 120 for employees in other parts of the business). Overall Monzo employs more than 1,500 people.

Monzo is one of the UK's brightest fintech startups, with 4 million customers and a valuation of $2.5 billion at its latest fundraise. The company launched as a challenger to traditional high-street banks, with an easy-to-use app, budgeting tools, and an eye-catching coral debit card.

Fintech more generally is Europe's best-funded startup sector, and newcomers such as Monzo plus rivals Revolut and Starling, have enjoyed burgeoning valuations in the boom times.

But European startups are preparing for an expected downturn, as COVID-19 dampens spending and economic activity. Monzo was in the process of raising £100 million in new funding in December 2019, a round which may now be tough to close. Blomfield had also outlined in February to roll out in the US in an interview with Business Insider. The company, like many fast-growing startups, remains unprofitable.

Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story.

And get the latest coronavirus analysis and research from Business Insider Intelligence on how COVID-19 is impacting businesses.

NOW WATCH: Why bidets are better than buying countless rolls of toilet paper