Digital bank Monzo is in early discussions with Brazilian fintech powerhouse Nubank over a potential acquisition that could reach a valuation of between £8bn and £10bn.
The UK fintech has been approached by US-listed Nu Holdings and has reportedly hired bankers at Morgan Stanley and Qatalyst to advise on the potential transaction.
Nubank, which trades on the New York Stock Exchange under Nu Holdings, commands a current valuation of $65.5bn (£49.4bn), dwarfing Monzo’s last known valuation.
Monzo was valued at £4.5bn in October 2024 following an employee secondary share sale, meaning the proposed deal would represent a significant premium to that figure.
A deal would hand Nubank a UK banking licence and access to Monzo’s 16 million retail and business customers across Britain, significantly expanding the Brazilian firm’s European footprint.
Nubank currently operates with licences across the Americas but has a limited presence in Europe, with its main continental base being a large tech and engineering facility in Berlin.
The potential acquisition would also position Nubank to take on rival Revolut in Europe, after Revolut accelerated its own expansion into Latin and North America over the past year.
Monzo confirmed earlier this year that it had abandoned plans for US expansion, redirecting its strategic focus toward Europe, with Spain and Ireland expected to be its first targets.
A spokesperson for Nubank 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.”
The talks represent a significant blow to hopes of a Monzo stock market listing, with the company reported in May 2025 to be lining up bankers for a potential £6bn IPO on the London Stock Exchange.
Monzo had been seen as one of a fleet of fast-growing UK fintech companies that government officials and City figures hoped would breathe new life into the depleted London market.
The potential sale comes amid a turbulent period for Monzo’s leadership, with a boardroom rift triggering significant management changes over the past year.
Chair Gary Hoffman confirmed last month his intention to step down, ending his tenure more than a year earlier than his nine-year term would ordinarily permit.
The upheaval follows the departure and subsequent return of long-standing chief executive TS Anil, who announced in October 2025 that he would step aside for former Google executive Diana Layfield to take over as group chief executive.
It later emerged that Anil had been locked in a battle with the board over the timing of a public listing, with the former chief keen on an earlier schedule than the board preferred.
London had been viewed as the likely listing venue by Monzo’s board and investors, though speculation emerged that Anil had been leaning toward New York as an alternative.
Anil subsequently returned to the Monzo board in a vice-chair capacity after a group of loyalists threatened a rebellion against Hoffman, adding further complexity to the firm’s governance.