Monzo is in talks to launch a new funding round that would value the business way above current estimates, according to Sky News.
A highly valued funding round would be a boost to the pioneering digital bank, which has run into major problems over the past twelve months.
Plans to apply for a US banking licence were dropped after it became clear it was unlikely to get one.
Earlier this year, the bank also revealed it was being investigated over potential breaches of UK anti-money laundering laws.
According to the report from Sky, Monzo will raise GBP300mln with GBP200mln coming from new investors, at a price that would value the loss-making bank at GBP3bn.
A capital raise earlier this year valued it at GBP1.1bn.
Though widely adopted by a young, digital-savvy crowd especially in London, Monzo has struggled to make a profit and lost GBP130mn in the year to February.
New innovations have seen it enter the controversial ‘buy now, pay later’ (BNPL) market with the launch of Flex, a product that lets customers spread the cost of their purchases.
With Flex, customers can borrow up to GBP3,000 interest-free if they repay the loan over three months. If they spread the cost over six or 12 months, they will have to pay interest of 19% a year.
Klarna is the market leader in BNPL with a value estimated at US$46bn.