Monzo in talks about multibillion pound sale to Brazil's Nubank

Monzo, the digital lender whose rapid growth has turned it into one of Britain's biggest consumer banks, is in talks about a sale to Brazil's Nubank which could value it at between £8bn and £10bn.

Sky News has learnt that Monzo has been approached about a combination with Nu Holdings, which is listed on the New York Stock Exchange and has a market capitalisation of $65.5bn (£49.4bn).

The discussions between Monzo and Nu Holdings are said to be at a relatively early stage, although the British company has engaged investment bankers from Morgan Stanley and Qatalyst to advise it and the outline terms of a deal are said to be under negotiation.

One source close to the process said an acquisition of the UK lender by the Sao Paulo-headquartered digital bank was one of two principal options being explored by Monzo's board and shareholders.

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The other is understood to be a new round of funding which would be expected to value Monzo at in excess of £8bn, with the proceeds used to facilitate further expansion in mainland Europe.

Monzo has amassed a 16 million-strong customer base, with 15 million of those personal banking customers along with 1 million users of its business banking services.

That scale makes it comfortably one of Britain's top 10 banks little more than a decade after it was founded by a group of entrepreneurs including Tom Blomfield.

If a deal with Nu Holdings does proceed, it is likely to be structured as a combination of cash-and-stock, according to banking sources.

The exact price Monzo would change hands for in a sale is unclear, although Monzo's shareholders are likely to want a significant premium to its most recent formal valuation, with £8bn entirely realistic and a £10bn price tag not out of the question, according to one analyst.

Monzo was last valued at £4.5bn in a secondary share sale conducted in October 2024, with its value having risen very significantly during the ensuing two years.

In its most recent annual financial results, the company reported a 39% surge in revenue to £1.7bn, with adjusted pre-tax profit 20% higher at £172.6m.

While Monzo is a privately held company, with shareholders including an arm of Google's parent, Alphabet, and a Singaporean sovereign wealth fund, a sale to Nubank's owner would spark a fierce debate in the City.

Monzo has been hailed for years as a UK fintech champion, with its rapid growth and record of innovation helping it to become one of the most valuable scale-ups of the last 20 years.

Its most recent launch was Aura, which it says is the first credit card in the UK that lets customers automatically invest cashback as they spend, allowing them to balance daily rewards with building long-term financial progress.

Government ministers and the London Stock Exchange have been engaged in vigorous efforts to persuade Monzo to list in the UK, with a stock market flotation a strong possibility in the next two years - if it is not sold to Nubank.

However, a US listing would also be on the table given the geographical bias of the bank's investor register, meaning an initial public offering in London would in any case be far from assured.

Revolut's founder recently confirmed that a dual listing in New York and London was under consideration.

Removing the prospect of a Monzo IPO in the medium term would be perceived as a blow to the City, although a major investment from a large emerging markets banking group such as Nu Holdings could also deliver significant benefits to Britain's financial services industry.

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The talks between the two companies come during a wave of corporate activity in the UK fintech sector.

Larger rival Revolut was recently valued at $115bn in a secondary share sale, although it is more profitable and has a bigger international customer base and product offering than Monzo.

In addition to its home market, Monzo has launched in Ireland, with a customer waiting list now open in Spain.

Other markets in continental Europe are expected to follow in due course.

A sale to Nu's owner would combine Monzo with a rapidly scaling digital lender in South America.

The company operates in Brazil, Colombia and Mexico, and now boasts 140 million customers, according to its website.

News of a potential takeover of Monzo by Nu Holdings comes just weeks after Monzo confirmed the retirement of its veteran chairman, the banking industry stalwart Gary Hoffman.

Last year, Mr Hoffman orchestrated the replacement of TS Anil, Monzo's chief executive, sparking a tussle with a number of major investors who had backed him to continue running the bank.

Monzo is now run by Diana Layfield, a former Google and Standard Chartered executive, with a search for a permanent successor to Mr Hoffman ongoing.

It has also appointed Rupert Keeley, a former PayPal executive, as Monzo's UK chair, part of a board separation aimed at positioning the company to capitalise on further growth in its home UK market and in Europe.

The company has amassed a substantial customer base by developing a track record of product innovation, launching features such as its Gambling Block and Saving Challenge.

It recently topped the UK competition watchdog's rankings for service quality across personal and business current accounts in the UK.

Monzo's rapid growth has not been entirely without challenges, most notably being fined £21m by the Financial Conduct Authority in July 2025 for failings in financial crime controls.

To strengthen its profile, Monzo has begun attaching its brand to prominent sports sponsorships including English cricket's Hundred tournament and newly promoted Premier League side Coventry City.

Monzo declined to comment.

In response to an enquiry from Sky News, Nu Holdings said: "Nubank does not comment on rumours or speculation.

"We reaffirm our commitment to maintaining open, clear and timely communication regarding all significant business matters."

(c) Sky News 2026: Monzo in talks about multibillion pound sale to Brazil's Nubank