Nubank in Early Talks to Acquire Monzo at Up to £10 Billion
Nubank in Early Talks to Acquire Monzo at Up to £10 Billion #
Brazil’s Nu Holdings, the parent company of digital bank Nubank, is in early discussions to acquire UK challenger bank Monzo in a potential deal that could value Monzo at between £8 billion and £10 billion ($10.6 billion to $13.25 billion), according to reports first published by Sky News and confirmed by Bloomberg and Reuters, which cited people familiar with the matter.
The talks are at a preliminary stage and no agreement has been reached. Nubank, listed on the New York Stock Exchange with a market capitalisation of roughly $65.5 billion, declined to comment, saying it does not respond to rumours or speculation.
A deal at the upper end of the reported range would be more than double Monzo’s last known valuation of £4.5 billion, set in October 2024 when Singapore’s GIC and StepStone Group participated in an employee and secondary share sale. The potential price would also imply a multiple of more than 100 times Monzo’s recent pre-tax profit figure, suggesting strategic considerations rather than near-term earnings would be the primary driver of any deal.
Monzo has retained investment banks Morgan Stanley and Qatalyst Partners as advisers as it evaluates its options, according to FinanceFeeds and other outlets. A sale to Nubank is one of two paths the board is actively considering. The other is a new funding round targeting a valuation above £8 billion, with proceeds earmarked for expansion into mainland Europe. Private equity firm Advent International has also separately explored acquiring a minority stake in Monzo.
Monzo’s latest annual results showed revenue climbing 39 percent to £1.7 billion for the fiscal year through March, with the bank now serving approximately 15 million customers in the UK. Monzo has been expanding in Europe after exiting the US earlier this year, securing a banking licence from the Central Bank of Ireland and launching in both Ireland and Spain.
For Nubank, an acquisition would give it an established presence in the UK and a base for broader European expansion, markets the Sao Paulo-based group has not yet entered. Nubank serves more than 118 million customers across Brazil, Mexico and Colombia, making it one of the world’s largest digital banks by customer count.
The discussions come as neobanks face pressure to build scale and reach sustained profitability, with some pursuing acquisitions and others working toward public listings.
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