Cheerio to Monzo — whose annual losses have more than doubled

British digital bank Monzo announced on Thursday that its annual losses had more than doubled; warning customers about their difficulty to continue operating due to the coronavirus pandemic.

The start-up reported an annual post-tax loss of £113.8 million ($149.5 million) in its 2020 accounts, up from the £47.1 million it lost last year, amid investment on hiring, marketing and a U.S. expansion.

That was despite revenues more than tripling to £67.2 million from £19.7 million.

Monzo lent out a record £143.9 million, compared to £19.2 million in its 2019 results.

But it anticipates credit losses to climb dramatically to £20.3 million from £3.9 million, with £4.1 million of that sum being set aside for a heightened default risk associated with the pandemic.

In a sign of the toll the crisis has taken on some start-ups, Monzo said the disruption resulting from Covid-19 has led to “significant doubt” about its ability to continue “as a going concern.”

“Our revenue streams have been significantly impacted by the COVID-19 pandemic and resulting macro-economic uncertainty,” Monzo said in its report.

“Regulatory reviews will also lead to stricter financial crime requirements.”