Monzo Reportedly in Talks for £10 Billion Sale to Brazil's Nubank

Digital bank Monzo is reportedly in exclusive talks to be sold to Brazilian rival Nubank for up to £10 billion, according to Sky News. This potential deal would see the UK-based fintech eschew a previously anticipated London listing.

Nu Holdings, the New York-listed parent company of Nubank, is said to be considering the acquisition. The news comes as the London Stock Exchange faces scrutiny over a lack of new listings and a series of foreign takeovers of British companies.

Monzo is also reportedly in discussions with private equity firms, including US investor Advent International, regarding a minority stake. However, sources told Sky News that a deal with a private equity firm would only proceed if talks with Nubank were to falter.

Founded in 2015, Monzo has grown to become a significant player in the UK consumer banking sector with 16 million customers. Last year, the bank reported a 39 percent increase in revenue to £1.7 billion and a 20 percent rise in adjusted pre-tax profits to £172.6 million.

Monzo's former CEO, TS Anil, departed last year amid disagreements over plans for an initial public offering (IPO). The company has since simplified its operations, including exiting the US market and relinquishing its EU banking license, which analysts suggested were preparatory steps for a public listing.

A sale to Nubank, which boasts over 140 million customers, would mean Monzo would not pursue its expected listing in London, where it was projected to achieve a valuation between £6 billion and £7 billion. Monzo was last valued at £4.5 billion in an employee share sale in October 2024.

The potential acquisition of Monzo would add to a list of high-profile British companies that have been acquired by foreign entities this year, including City institution Schroders, Lloyd's of London insurer Beazley, warehouse giant Segro, budget airline easyJet, and ingredients maker Tate and Lyle.