Monzo in talks over £10bn sale to Brazil's Nubank in blow to city

Monzo has reportedly been approached by Brazilian digital banking giant Nubank about a sale that could value the UK fintech at up to £10bn, dealing a setback to the London Stock Exchange.

In recent news, London-headquartered Monzo is reportedly in talks with the parent company of Brazil's Nubank, Nu Holdings, which has an IPO on the New York Stock Exchange. The acquisition will be structured as a combination of a cash and stock deal worth between £8 billion and £10 billion. This valuation of Monzo far exceeds the one of £4.5 billion in late 2024.

Besides that, Monzo has been negotiating with several private equity firms to raise funds by selling up to a 15% stake, while the traditional way of fundraising via venture capital is the third choice. Monzo has received legal and financial advice from Morgan Stanley and Qatalyst.

The deal comes at a significant moment in time for Monzo. The company has had a tough 2023 because major stakeholders, including Accel and Iconiq, held a coup after TS Anil, CEO of the company, unexpectedly left. They have demanded the removal of the chairman and increased board presence. Diana Layfield became the new CEO of the company in February and closed the US branch of Monzo.

A sale would mark the latest blow to the London Stock Exchange, which has long courted Monzo as a potential listing candidate. Revolut, founded in London in 2015, has also favoured U.S. markets.

Monzo was founded in 2015 and has 16 million customers and generated £87.3m in pre-tax profits in the year to March 2026, with revenues up 39% to £1.7bn. Monzo declined to comment.