Monzo is in talks over a sale of both its entire business and a minority take in a blow to London’s public markets.
The City has long courted Monzo, one of the UK’s flagship digital banks, as a potential listing candidate.
However Sky News has reported that New York-listed Nu Holdings – parent company of Brazil’s Nubank, Latin America’s largest FinTech – is in talks over a cash-and-shares takeover offer worth between £8-10 billion.
In parallel, Monzo is in talks with several private equity firms about selling off a minority stake of up to 15% – should the Nubank deal fall through – which would allow it to accelerate growth.
Advent International, former owner of Worldpay, is reported to be among the PE firms holding talks.
A third, less likely option is said to be another traditional equity fundraise.
A secondary share sale in 2024 valued Monzo at £4.5bn but it has performed well since then, growing its customer base to more than 16 million and reporting a 39% jump in revenue to £1.7bn and 20% rise in pre-tax profits to £172.6m in its latest annual results.
Last year Monzo revealed plans to replace its CEO TS Anil with Diana Layfield, but a shareholder rebellion – led by venture capital firms Accel and Iconiq – saw him retained as vice chair amid demands for greater investor representation on its board.
Layfield began the role in February and has closed Monzo’s US operations, with a renewed focus on growth in Europe.
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