Nubank and Monzo entered preliminary acquisition discussions, according to separate reports by Sky News and the Financial Times. The reports placed a potential valuation for the British digital bank at between £8 billion and £10 billion. Any transaction could combine cash and shares. Neither company announced an agreement or board-approved deal.
Bloomberg reported that Monzo had engaged Morgan Stanley and Qatalyst as advisers, while the Financial Times said the talks remained at an early stage. Monzo was valued at £4.5 billion in an October 2024 secondary share sale. The bank reported £1.7 billion of revenue and £87.3 million of pre-tax profit for the year to March 2026. It has about 16 million customers, mainly in the UK.
MONZO IS CONSIDERING MORE THAN ONE CAPITAL PATH
A sale is not the only option under consideration. Monzo was also reported to be considering a new funding round at a valuation above £8 billion to fund European expansion, and to have held talks with private-equity groups about selling a stake of up to 15% to finance growth.
A sale to Nubank would rule out a near-term London listing for Monzo. Monzo obtained a European banking licence from the Central Bank of Ireland in December 2025 and launched in Ireland in April.
A COMBINATION WOULD LINK EUROPE AND LATIN AMERICA
Nubank serves about 140 million customers across Brazil, Mexico and Colombia, according to the reports. Nu currently has no presence in the UK or Europe.
Any acquisition would require approval from the Prudential Regulation Authority, the Financial Conduct Authority and Monzo's shareholders. Monzo declined to comment to the outlets, while Nu Holdings told Sky News that it did not comment on rumours or speculation.