Monzo in talks over multibillion-pound sale to Brazil's Nubank

Sky News reported on Saturday that Monzo, the London-based digital bank, is in early-stage talks about a combination with Brazil's Nubank (Nu Holdings) that could value it at between £8bn and £10bn ($10.6bn-$13.25bn). Neither company commented on the report, which cites a source close to the process and says no agreement is close.

Two options for Monzo's board

According to Sky News, an acquisition by Nubank is one of two options Monzo's board is weighing. The other is a new funding round that would also value the bank at more than £8bn, with the proceeds earmarked for expansion into mainland Europe. Monzo had previously considered a London stock-market listing, and in May 2025 was reported to be lining up banks for an IPO of about £6bn. The company has hired Morgan Stanley and Qatalyst Partners to advise on a possible deal, which Sky News says would likely be structured as a mix of cash and stock.

What the numbers look like

Monzo is one of Britain's biggest consumer banks, with 15.2 million customers and £25.7bn in deposits, according to its 2026 annual report. For the year ended in March 2026, it reported a pretax profit of £87.3m, up from £60.5m a year earlier, on revenue that grew to £1.7bn from £1.2bn. The bank was last valued at £4.5bn in an employee share sale in October 2024, so a deal in the £8bn-£10bn range would more than double that figure. Diana Layfield, a former Google and Standard Chartered executive, took over as chief executive in February 2026. Earlier this year Monzo said it would close its US operations and focus on the UK and Europe; in July 2025 the FCA fined it £21m over weaknesses in its financial crime controls.

Why Nubank wants a UK foothold

Nubank is listed on the New York Stock Exchange as Nu Holdings, with a market capitalisation of about $65.5bn (£49.4bn), and serves roughly 140 million customers across Brazil, Mexico and Colombia. Buying Monzo would give it a fully licensed, profitable base in Britain, plus a platform for European expansion; its main continental presence today is an engineering hub in Berlin. The move would also put Nubank in direct competition with Revolut in Europe. Any deal would still need approval from the UK's Prudential Regulation Authority and the Financial Conduct Authority, as well as a vote by Monzo's shareholders, and a sale would deal a blow to hopes that Monzo would list in London.