Monzo is in early-stage talks with Nubank, the Brazilian digital financial institution, over a possible sale that will worth the UK financial institution at between £8bn and £10bn, and can also be reported to be in discussions with personal fairness corporations together with Creation Worldwide a few deal at the same valuation.
Sky Information, which first reported the choices being thought-about by Monzo’s board, mentioned a takeover by Sao Paulo-based Nubank can be funded by a mix of money and shares. A take care of Creation, an American buyout agency with greater than $100bn in belongings beneath administration, might additionally worth Monzo at as a lot as £10bn, in line with Sky.
A 3rd possibility, a enterprise capital-led funding to assist fund enlargement in Europe, can also be understood to be into consideration. A non-public fairness deal could also be viable provided that the Nubank talks don’t proceed, Sky reported.
Nubank, Monzo and Creation declined to remark.
Monzo was final valued at £4.5bn in an worker share sale in October 2024, when traders together with GIC, Singapore’s sovereign wealth fund, and StepStone Group purchased shares. A deal at £10bn can be greater than double that determine.
The financial institution reported income of £1.7bn for the 12 months to 31 March 2026, up 39 per cent, and adjusted revenue earlier than tax of £172.6m, up 20 per cent, in line with its annual report. It mentioned it added three million prospects throughout the 12 months, taking its complete to fifteen.2 million, and that it had expanded into Europe after acquiring a banking licence from the Central Financial institution of Eire.
Based in 2015, Monzo now has about 16 million prospects, of whom 15 million are shoppers and about a million are enterprise banking prospects, and it employs greater than 5,000 folks. It’s understood to be suggested by Morgan Stanley and Qatalyst, the technology-focused funding financial institution.
Diana Layfield, a former Google govt, was named as Monzo’s chief govt final 12 months, changing TS Anil after boardroom unrest. Anil has remained on the board as vice-chairman after among the financial institution’s enterprise capital backers protested over his departure.
Nubank, which is listed in New York and trades exterior Brazil as Nu, describes itself as the biggest digital financial institution in Latin America. It reported 139 million prospects throughout Brazil, Mexico and Colombia on the finish of June and internet earnings of $1.1bn for the second quarter, in line with its outcomes submitting with the US Securities and Change Fee. It has a inventory market worth of about $66bn and is thought to be a competitor to Revolut.
A takeover of Monzo can be Nubank’s first push into Britain. The corporate has additionally been reported to have thought-about shifting its authorized registration to the UK.
A sale to Nubank would take Monzo, which has been extensively anticipated to be a flotation candidate, out of the working for a London itemizing. The London Inventory Change has seen a dearth of flotations since a post-pandemic flurry of recent listings in 2021.
Ministers have been attempting to maintain high-growth firms itemizing in London. In January the federal government made a £25m funding in Kraken Applied sciences by the British Enterprise Financial institution as a part of what it mentioned was a £125m bundle to assist scale-up firms develop and checklist within the UK.
Amy Ingham
Amy Ingham is a reporter at Enterprise Issues, protecting UK enterprise information with a deal with breaking information, enterprise coverage, late funds and insolvency. She joined the journal in 2026 after finishing the NCTJ Diploma in Journalism at Harlow Faculty’s journalism faculty. Her latest reporting contains British Metal’s nationalisation and its affect on SME suppliers, the decline in late funds by massive corporations, and Insolvency Service director disqualifications. Attain her at aingham@cbmeg.co.uk.
