Monzo’s valuation has jumped to £4.5bn after it completed a fresh employee share sale.

The London fintech has seen its value jump by around £400m compared to a funding round it closed in May.

Investors participating in the deal include existing backers StepStone Group and GIC, Singapore’s sovereign wealth fund, which took part in Monzo’s £500m capital raise five months ago.

Monzo CEO TS Anil said: “It’s great to be able to provide employees with some liquidity, while meeting further investor demand for Monzo equity.

“It’s because of our employees’ commitment to our mission that we’ve grown to more than 10 million customers [and] continue to launch game-changing products.”

As many as 1 in 5 UK adults and 1 in 16 businesses now bank with Monzo as the challenger bank continues to see rapid growth. The firm now has plans to expand into Europe via a gateway in Ireland and continued expansion in the US.

In Monzo’s most recent accounts, the company posted net operating income of £215m, a near-doubling on the previous year, with losses of £116m. The company said it was now on course to hit its first profitable year.

Gary Hoffman, Chair of Monzo, said: “The valuation we have achieved and the strong investor interest it reflects is a huge endorsement of everything that the leadership team and all Monzonauts have achieved.”