Photo credit: Monzo

British digital bank Monzo is raising new funding that’ll value it at about £1.25 billion ($1.5 billion) compared to a valuation of £2 billion ($2.5 billion) when the company raised funding in June of last year, according to a report from the Financial Times. Such would imply a 40% valuation drop for Monzo as a result of economic hassles resulting from the coronavirus pandemic. The Financial Times reports that Monzo plans to raise between £70 million ($85 million) and £80 million ($96 million) in additional funding to help see it through a business disruption resulting from the current pandemic.

Early this year, Monzo was reported to have initiated talks of raising new funding to help it expand. It seems that such funding talks were stalled by the pandemic, leading Monzo to seek urgent funding from existing investors. Among Monzo’s investors include Y Combinator Continuity, Accel, Thrive Capital, General Catalyst, and U.S. payments company Stripe. Altogether, Monzo is known to have raised some £325 million ($395 million) in funding since its inception.

As part of cost-cutting efforts, Monzo’s CEO, Tom Blomfield, has told the company’s staff that he would forgo his salary for the next 12 months. Senior executives at the company have also agreed to a pay cut to help cut costs.