yann lecun

In the fast-evolving world of personal finance apps, Monarch Money has emerged as a standout player. Reports indicate that the company, which is now on the market to raise a new funding round, has seen its annual recurring revenue (ARR) skyrocket from $5M to $30M in a year —a sixfold increase that signals both operational excellence and a market primed for disruption.

But what’s fueling this ascent, and how does Monarch stack up in a competitive landscape once dominated by giants like Mint? Let’s dive into the story of Monarch Money, the tailwinds propelling its growth, and what its future might hold as it scales.

Why Monarch Money Is on the Rise
Monarch Money’s success isn’t a fluke—it’s a textbook case of being in the right place at the right time with the right product. Founded in 2018 by Val Agostino (Mint’s first product manager), Jon Sutherland, and Ozzie Osman, Monarch entered the scene with a mission to “do it right this time.” Unlike Mint, which stagnated under Intuit’s ownership, Monarch positioned itself as a premium, subscription-based app focused on holistic financial planning—not just budgeting, but goal-setting, net worth tracking, and investment oversight. This broader vision has resonated with users disillusioned by free, ad-supported models that prioritize advertiser interests over customer needs.

The numbers tell the story: growing from $5M to $30M ARR reflects not just user adoption but retention, a critical metric for subscription businesses. Monarch’s premium pricing—$14.99/month or $99.99/year—suggests a willingness among consumers to pay for a polished, ad-free experience with robust features like customizable dashboards, multi-account syncing (over 13,000 financial institutions), and collaborative tools for couples or advisors. This shift from free to paid models mirrors a broader trend in fintech: users are prioritizing value over cost as they seek tools to navigate increasingly complex financial lives.

Market Tailwinds: Mint’s Shutdown and Beyond
Monarch’s rise didn’t happen in a vacuum—market tailwinds have played a starring role. The most seismic event was Intuit’s decision to shut down Mint, announced in late 2023 and finalized in early 2024. Mint, once the gold standard of free budgeting apps with 3.6 million monthly active users at its peak, left a gaping hole in the market when Intuit redirected users to Credit Karma—a platform strong on credit monitoring but lacking Mint’s budgeting depth. Monarch pounced on this opportunity, fast-tracking its expansion (including into Canada) and offering a seamless Mint data importer to preserve users’ financial histories. The result? A flood of ex-Mint users, with Monarch reporting November 1, 2023, as its biggest day for new sign-ups since its 2021 launch.

But Mint’s demise is just one piece of the puzzle. Other tailwinds include:

• Growing Demand for Comprehensive Financial Tools: As wealth grows—whether through investments, real estate, or crypto—consumers need more than basic budgeting. Monarch’s ability to track net worth, investments, and even assets like homes and cars aligns with this shift.
• Subscription Economy Boom: From streaming to software, subscriptions are now a norm. Monarch’s premium model taps into this willingness to pay for quality, contrasting with free apps like Rocket Money’s base tier that limit functionality.
• Open Banking Momentum: While slower in markets like Canada, open banking frameworks are enhancing data connectivity, a boon for apps like Monarch that rely on syncing multiple accounts. Its partnerships with aggregators like Plaid, MX, and Finicity give it an edge in reliability.
• Post-Pandemic Financial Awareness: The economic turbulence of recent years has heightened focus on personal finance, driving demand for tools that offer clarity and control.
  These factors have created a perfect storm, propelling Monarch from a niche player to a serious contender in the fintech space.

Monarch vs. the Market: Scaling and Valuation Comparisons
As Monarch scales, it’s natural to compare it to Truebill, which Rocket Companies acquired for $1.275 billion in late 2021. Truebill, rebranded as Rocket Money, had reached $100M ARR at the time of its sale—a valuation multiple of roughly 12.75x ARR. That deal, struck at the peak of the 2021 market bubble, offers a benchmark, though today’s valuations are more grounded.

How might Monarch stack up once it scales? Let’s break it down:

Feature Set: Truebill/Rocket Money carved a niche with subscription management and bill negotiation—features Monarch doesn’t emphasize. Monarch, however, offers a broader suite, including investment tracking and zero-based budgeting, appealing to a slightly more sophisticated user base. This could command a premium as it scales, especially if it retains high customer satisfaction (evidenced by glowing reviews on Reddit and app stores).
Growth Rate: Truebill’s growth rate pre-acquisition isn’t public, but Monarch’s jump from $5M to $30M ARR in a short span hints at a steep curve. If it sustains this momentum—say, reaching $100M ARR in 2-3 years—it could approach Truebill’s scale, albeit in a tougher funding environment. But to investors this could mean $1B+ valuation in 2-3 years, which is equivalent to a ~3x return if they pay ~$300M for this asset today. Not a bad outcome.
Competitive Landscape: Monarch faces stiffer competition today from Rocket Money, YNAB, Quicken Simplifi, and free options like NerdWallet. Its differentiation—data connectivity, premium focus, and ex-Mint pedigree—will be key to standing out as it scales.

Should Monarch Trade Like an AI Company?
A lingering question is whether Monarch should be valued like an AI company, given the buzz around artificial intelligence in fintech. Monarch does leverage AI—for example, to clean transactions and improve categorization over time—but it’s not an AI-first company like, say, an autonomous trading platform. Its core value lies in user experience, data aggregation, and financial planning tools, not groundbreaking AI innovation.

Here’s the breakdown:

AI Usage: Monarch’s AI enhances efficiency (e.g., transaction rules, predictive categorization), but it’s not a proprietary, market-disrupting technology. Rocket Money and others use similar tech, suggesting AI is table stakes, not a differentiator.
Valuation Metrics: AI companies often trade at higher multiples (15-30x revenue) due to perceived growth potential and innovation. Monarch’s $30M ARR, while impressive, is driven by a SaaS-like subscription model, not AI breakthroughs. A 7-10x multiple aligns it more with fintech SaaS peers like BILL ($8B market cap, ~7x revenue) than AI unicorns like OpenAI.
Market Perception: Investors might hype Monarch’s AI features in a pitch deck, but without a transformative AI narrative (e.g., replacing financial advisors entirely), it’s unlikely to command AI-level premiums. Its story is more about execution and market fit than tech disruption.
That said, if Monarch leans harder into AI—say, by integrating personalized financial advice or predictive analytics—it could shift the narrative. For now, it’s best valued as a high-growth fintech SaaS company, not an AI trailblazer.

What do you think about the business? Welcoming comments.