Monzo in talks with Brazil’s Nubank about sale

Monzo has been approached by Brazilian digital banking giant Nubank about a sale that would potentially value the UK fintech at up to £10bn.

London-based Monzo is in early-stage discussions about a tie-up with Nubank’s New York-listed parent, Nu Holdings, according to two people familiar with the matter.

One person added that any takeover would be through a mixture of cash and shares and would value Monzo at between £8bn-£10bn.

Another person added that the bank had also been in discussions with several private equity firms about selling a significant stake, up to 15 per cent, in the business to secure a cash injection to accelerate growth.

A third option would entail the group launching a more traditional venture capital-style fundraising round, where investors take smaller stakes in the business.

Monzo’s previous secondary fundraising round in 2024 valued the group at £4.5bn.

Monzo is being advised by Morgan Stanley and the technology bank Qatalyst, according to one person familiar with the matter.

The discussions come at a crucial time for Monzo. Last year the bank’s big investors, including venture capital firms Accel and Iconiq, staged a rebellion following the surprise departure of chief executive TS Anil from the bank. The shareholders demanded the ousting of Monzo’s chair and greater investor representation on its board.

Since coming in as chief executive in February, Diana Layfield has closed Monzo’s US operations and focused on growth in Europe, launching operations in Ireland and Spain.

A sale to the São Paulo-based Nubank, which boasts a $65bn valuation and 140mn customers across the Americas, would mark the latest blow to the London Stock Exchange, which has long courted Monzo as a potential listing candidate.

The timing of Monzo’s potential initial public offering had been a point of contention among its investor base, with some shareholders cautioning against a rapid listing.

The 13-year-old Nubank, which is the largest fintech in Latin America, is also focused on international expansion and has secured an American banking licence.

Sky News first reported the discussions on Saturday morning. Monzo declined to comment.

Recommended

Monzo was founded by Tom Blomfield in 2015, which was one of a crop of fintechs that hoped slick apps would lure young users away from traditional banks. Today, the group has 16mn customers, almost all of whom are in the UK.

Monzo generated £87.3mn in pre-tax profits in the fiscal year to March 2026, compared with £60.5mn the year before. Revenues jumped 39 per cent to £1.7bn over the period.

However, Monzo has often existed in the shadow of its bigger domestic rival Revolut, which has 80mn customers and operations in more than 40 countries.

Monzo’s chief executive is also attempting to diversify the group’s revenue streams by building out its lending portfolio and adding more features, including mobile phone e-sims.