A significant shareholder rebellion is threatening to destabilise one of Britain's most prominent fintech firms, Monzo. A coalition of investors, holding more than 40 per cent of the company's stock, is orchestrating a move to remove chair Gary Hoffman following the unexpected departure of chief executive TS Anil.
The Plot to Reinstate a CEO and Remove a Chair
The investor group, which includes heavyweight venture capital firms Accel and Iconiq, has engaged legal counsel as it campaigns for the reinstatement of TS Anil. Anil's exit, announced in October 2024, sent shockwaves through the City. He is scheduled to be replaced by former Google executive Diana Layfield in February 2025.
According to reports, the shareholders are simultaneously seeking the removal of Monzo's chair, Gary Hoffman. Hoffman, who has chaired the neobank since 2019, previously served as chairman of the English Premier League, where his handling of the Newcastle United takeover attracted criticism for perceived bias.
Boardroom Rifts Over Strategy and IPO Ambitions
The roots of the conflict appear to lie in strategic disagreements, particularly concerning Monzo's path to a public listing. The board is understood to have wanted a new leader to accelerate the company's overseas expansion and prepare for a blockbuster IPO. Speculation had swirled that Anil might not remain long-term post-listing, a factor in the board's decision.
Anil himself had stated he met Diana Layfield while searching for a UK chief who would report to him, but concluded she had the qualifications for the top global role. However, tensions existed between Anil and the board over both the timing and location of a potential public debut.
Implications for Monzo's Future and £6bn Float
This internal power struggle arrives at a critical juncture for Monzo, which has long been tipped for a major London listing. Reports earlier in 2024 suggested preparations were underway for a £6bn float. The London-headquartered bank, famous for its coral pink debit cards, saw its valuation climb to £4.5bn in October 2023 following a share sale.
The shareholder revolt, as reported by the Financial Times, is also pressing for greater investor representation on Monzo's board. This turmoil at the top now threatens to derail the company's momentum and cast uncertainty over its highly anticipated IPO plans, potentially throwing its growth strategy into chaos.
Monzo, Accel, Iconiq, Gary Hoffman, and TS Anil have all declined to comment on the reports.
