The news
Sky News first reported the Monzo Nubank talks on September 26, 2026: the British digital bank is in early discussions about a sale to Nu Holdings (NU), Nubank's owner, in a deal that could value Monzo at £8 billion to £10 billion.
According to the Sky News report, as relayed by City A.M., Investing.com and The Next Web, the talks are at a relatively early stage and there is no certainty of an agreement. Monzo has hired Morgan Stanley and Qatalyst Partners as advisers, and any deal would likely be paid in a mix of cash and Nu shares.
A sale is one of two main options before Monzo's board and shareholders, the reports said. The other is a new funding round at a valuation above £8 billion to pay for expansion in mainland Europe. A sale would rule out a near-term stock market listing in London, which had been viewed as the likely venue for an initial public offering (IPO). Retail Banker International reported that UK government and London Stock Exchange representatives have lobbied for a domestic listing within two years if a trade sale does not happen.
Nubank said it "does not comment on rumours or speculation," according to City A.M. and The Next Web, and Monzo declined to comment. In a follow-up report on September 27, Sky News said private equity firm Advent International is one of several buyout firms that have held initial talks about buying a minority stake in Monzo, and that bankers saw such a deal as viable only if the talks with Nu stalled.
Monzo's annual report shows revenue of £1.7 billion for the year to March 31, 2026, up 39%, and adjusted pre-tax profit of £172.6 million, up 20%; the bank said it added 3 million customers in the year. Reports put its customer base at about 16 million, including 1 million businesses. The proposed range is roughly double the £4.5 billion valuation set in an October 2024 share sale.
Nu, which is listed in New York, had a market value of about $65.5 billion and no UK or European banking presence, City A.M. and The Next Web reported. Its shares closed at $12.23 on September 28, the first trading day after the Sky News report, down about 10% from $13.59 on September 25, according to Stock Analysis and Yahoo Finance data.
The numbers
- Reported valuation range
- £8 billion to £10 billion
- Monzo prior valuation (Oct 2024)
- £4.5 billion
- Monzo revenue, year to March 2026
- £1.7 billion (+39%)
- Monzo adjusted pre-tax profit, year to March 2026
- £172.6 million (+20%)
- Monzo customers
- About 16 million
- Nu Holdings market value (reported, before Sept 28 fall)
- About $65.5 billion
Why CEOs should care
For the roughly 1 million businesses that bank with Monzo, nothing changes yet, but a change of owner could eventually affect product road maps, pricing and service. Finance leaders should note the dates of any customer notices and ask their relationship contacts how long a regulatory review of a deal would take and what would stay the same.
For boards and investors in late-stage fintechs, the talks show that trade sales are competing with IPOs as exit routes. Monzo is weighing a sale against a private round above £8 billion, both of which would delay a London listing. Boards should compare the certainty and timing of a strategic sale with the price discovery and liquidity of a public listing.
For UK and European banks, a well-funded Latin American entrant would raise the competitive stakes in retail and small-business banking. Strategy teams should look at where Monzo already competes with them and how a buyer with deeper pockets might accelerate its European expansion.
The bigger picture
Neobanks are expanding through new licences, partner banks and, in some cases, acquisitions. Banking Dive reported on September 15 that Nubank had launched in the United States through a partner bank ahead of full approval for its own charter, in a month when Revolut received conditional approval for a U.S. bank charter and Chime bought a bank rather than wait on the charter process. A Monzo deal would give Nu a licensed British bank and, the reports said, a platform for expansion into the European Union. The Next Web noted that Monzo's finance chief, Tom Oldham, previously worked at Nubank. Investing.com reported that Monzo announced in March 2026 that it would close its U.S. operations to focus on Britain and continental Europe under CEO Diana Layfield.
What’s next
Watch for confirmation from either company, the structure and price of any offer, whether Advent or other buyout firms move on a minority stake if the Nu talks stall, and how UK officials who have encouraged a domestic listing respond. If talks fail, a funding round above £8 billion would keep Monzo independent and push any IPO further out.
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