Monzo Turns to Venture Capital at £7.5bn as Nubank Buyout and Private Equity Talks Both Collapse
Monzo Turns to Venture Capital at £7.5bn as Nubank Buyout and Private Equity Talks Both Collapse #
UK digital bank Monzo is exploring a fresh funding round with venture capital investors that would value the company at approximately £7.5 billion, the Financial Times reported, after higher-priced deal options involving an acquisition by Brazil’s Nubank and a minority stake sale to private equity firms both fell through.
The proposed VC round marks the third and lowest valuation Monzo has sought in a matter of weeks. Sky News first reported in late September that Nubank had been in early discussions to acquire the British neobank for between £8 billion and £10 billion, a deal that would have given the Brazilian fintech a licensed UK banking operation and a foothold in Europe. Nubank publicly confirmed on September 30 that it was not proceeding with the transaction; the Financial Times attributed the breakdown to a disagreement over valuation.
After the Nubank talks ended, Monzo’s board, which had reportedly preferred a sale or private equity deal over a venture round, held discussions with buyout firms including Advent International, TPG and CVC about selling a stake of up to 15% at a valuation of around £8 billion. Those negotiations have since stalled, leaving a conventional venture capital raise as the remaining option, according to people familiar with the matter cited by the FT. No target fundraising amount has been disclosed.
The £7.5 billion figure is higher than the £4.5 billion valuation established through an employee share sale in October 2024, though it falls £500 million below what Monzo had sought from private equity investors and well below the range discussed with Nubank.
Monzo’s finances have improved over the same period. According to Bloomberg figures cited by analysts, the bank reported revenues of £1.7 billion for the year ended March 2026, a 39% increase, alongside a statutory pre-tax profit of £87.3 million, up from £60.5 million a year earlier. It now counts more than 16 million customers.
Under chief executive Diana Layfield, Monzo has expanded its product range and lending book and launched in Spain as part of a push into mainland Europe. Fresh capital would support those ambitions; a successful round at the reported valuation would give prospective investors a multiple of roughly 4.4 times annual revenue.
No agreement with investors has been announced, and discussions are described as exploratory. Prominent existing backers including Accel, Iconiq Capital, CapitalG and Singapore’s GIC are among those that could participate in any new round.
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