Nubank reportedly weighs £10 billion acquisition of Monzo

Brazilian digital lender Nubank is reportedly considering a bid to acquire U.K. FinTech Monzo, a move that would value the British company at up to £10 billion. The Financial Times reported on Saturday, September 26, citing two sources familiar with the matter, that the potential deal could be worth as much as $13.2 billion. Monzo has declined to comment on the speculation, while Nubank stated that it does not comment on rumours or speculation, reaffirming its commitment to clear communication regarding significant business matters.

According to the report, Monzo is currently evaluating three distinct strategic options. The first involves a full takeover through a combination of cash and shares, which would place the company’s valuation between £8 billion and £10 billion. A second option under consideration is the sale of a minority stake of up to 15% to private equity firms, a move intended to generate cash to fuel future growth. The third possibility is a venture capital-style funding round, in which investors would take smaller stakes in the business rather than a controlling interest.

These discussions are taking place during a period of significant internal change for Monzo. Last year, several investors pushed for the removal of the board chairman following the unexpected resignation of chief executive TS Anil. Gary Hoffman, who has served as chairman since 2019, announced last month that he would step down from his role. New chief executive Diana Layfield, who began her tenure in February, has overseen the closure of Monzo’s operations in the United States. The company is now focusing its expansion efforts on Europe, with recent launches in Ireland and Spain.

Monzo’s withdrawal from the U.S. market follows a period of rethinking its American banking licence. The firm had previously withdrawn an application in 2021 after regulators indicated approval was unlikely, and later considered relaunching the process as part of a broader expansion bid. Without a charter, Monzo remains dependent on partner banks, a situation that can constrain margins and limit product scope. The Financial Times noted that a sale to Nubank, which is valued at $65 billion with 140 million customers across the Americas, would represent a setback for the London Stock Exchange, which has been courting Monzo for a listing. Nubank, which is also pursuing international expansion, has obtained a banking licence in the United States.