People familiar with the matter say Nu Holdings Ltd., the company behind Brazilian digital lender Nubank, has explored a purchase of Monzo Bank Ltd. One person put a potential valuation in the £8 billion to £10 billion band, with £8 billion equating to about $10.6 billion. The discussions were first flagged by Sky News.
Monzo's most recent pricing came via a 2024 secondary share sale at roughly £4.5 billion. The bank now serves more than 16 million customers, offering personal and business accounts alongside products such as credit cards and home insurance.
Sky reported that Monzo is also considering raising new equity to support expansion across Europe, while it had previously looked at an initial public offering and additional secondary share sales to return capital to investors, many of whom are venture firms.
For its 2026 fiscal year, Monzo reported revenue of £1.7 billion. Deposits rose by 55%, reaching £25.7 billion. Earlier in the year, the company said it would concentrate on the UK and Europe and close its US operations after years of struggling to gain traction there.
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One person said Monzo brought in Morgan Stanley alongside the law firm Slaughter & May to evaluate a potential deal with Nubank. Qatalyst is also involved, advising on merger talks that Sky reported would likely be structured as a mix of cash and stock.
Diana Layfield became CEO in February, and the US exit was among her first significant strategic pivots. Former chief TS Anil left last year following boardroom disagreements over growth and listing plans. Monzo's CFO, Tom Oldham, previously led worldwide financial planning and analysis at Nubank.
Nubank has scaled quickly across Latin America, drawing in 135 million customers with higher-yield savings and easier account opening than traditional banks. It is listed on the New York Stock Exchange and is currently seeking to expand throughout the US. It currently has no presence in the UK or Europe.
A tie-up with Monzo would position Nubank for a direct contest in the UK and Europe against Revolut, which counts 80 million users worldwide and recently secured a US bank charter. If Monzo were sold, it would add pressure on London's listings scene, which has already seen companies go public elsewhere, go private, or move listings to the US; Wise shifted its primary listing from London to the US earlier this year.
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