Monzo is in early-stage talks with Nubank, a Brazilian digital bank, about a potential sale that would value the UK bank at between £8bn and £10bn, and is also reportedly in discussions with private equity firms including Advent International about a deal of the same value.
Sky News, which first reported the options being considered by Monzo’s board, said the takeover of Sao Paulo-based Nubank would be financed with a combination of cash and shares. The deal with Advent, an American buyout firm with more than $100bn in assets under management, could value Monzo at up to £10bn, according to Sky.
A third option, investment led by venture capital to help fund expansion in Europe, is also understood. The private equity deal can only be done if the Nubank talks do not go ahead, Sky reported.
Nubank, Monzo and Advent declined to comment.
Monzo was last valued at £4.5bn in an employee share sale in October 2024, when investors including GIC, Singapore’s sovereign wealth fund, and StepStone Group bought shares. The deal at £10bn would more than double that figure.
The bank reported profits of £1.7bn for the year to 31 March 2026, up 39 per cent, and adjusted pre-tax profits of £172.6m, up 20 per cent, according to its annual report. It said it added three million customers during the year, taking the total to 15.2 million, and has expanded to Europe after obtaining a banking license from the Central Bank of Ireland.
Founded in 2015, Monzo currently has around 16 million customers, of which 15 million are consumers and around one million are business banking customers, and has more than 5,000 people. It is understood to be advised by Morgan Stanley and Qatalyst, a technology-focused investment bank.
Diana Layfield, a former Google executive, was named chief executive of Monzo last year, replacing TS Anil after boardroom turmoil. Anil remained as vice-chairman after some of the bank’s venture capital backers protested his departure.
Nubank, which is listed in New York and trades outside Brazil as Nu, describes itself as the largest digital bank in Latin America. It reported 139 million subscribers in Brazil, Mexico and Colombia at the end of June and net income of $1.1bn for the second quarter, according to results filed with the US Securities and Exchange Commission. It has a stock market value of around $66bn and is considered a rival to Revolut.
The Monzo takeover will be Nubank’s first push into the UK. The company is also reportedly considering moving its legal registration to the UK.
A sale to Nubank will take Monzo, which has been widely expected to be a candidate for flotation, out of the running for London listing. The London Stock Exchange has experienced a lack of flotation since the post-pandemic event of a new listing in 2021.
Ministers have tried to keep high-growth companies in London. In January, the government made a £25m investment in Kraken Technologies through the British Business Bank as part of what it said was a £125m package to help large-scale companies grow and list in the UK.