Brazilian fintech powerhouse Nubank is quietly weighing a takeover of UK challenger Monzo in a blockbuster deal that could value the London-based digital bank at as much as $10.6 billion.
People familiar with the matter say talks between Nu Holdings, Nubank’s NYSE-listed parent, and Monzo remain preliminary. The UK app-based lender is simultaneously testing the market for alternative options. These include a potential minority equity sale to buyout firms like Advent International or a fresh funding round aimed at fueling its European rollout.
If completed at the top end of expectations, the transaction would more than double Monzo’s £4.5 billion valuation from a secondary share sale in 2024. News of the approach was first reported by Sky News.
Both lenders have so far remained tight-lipped. Nubank reiterated its standard policy of not commenting on market speculation, while Monzo declined to comment.
The potential tie-up comes at a pivotal moment for Monzo. The bank has quietly scaled up its core UK footprint to over 16 million users, posting £1.7 billion in revenue for fiscal year 2026 as deposits jumped 55% to £25.7 billion. But its global strategy recently underwent a sharp pivot. Under CEO Diana Layfield, who stepped into the top role in February, Monzo abandoned its multi-year push into the US market to double down on the UK and mainland Europe.
For Nubank, acquiring Monzo offers a shortcut into the UK and European banking landscape. Backed by a $65 billion market cap and a massive 135-million-strong customer base across Latin America, the Latin American giant is eager to find new growth drivers and taking on Revolut on its home turf fits that playbook.
Advisers are already in place. Monzo has retained Morgan Stanley and Slaughter & May to evaluate its strategic paths, with boutique firm Qatalyst advising on potential merger structures. Any final agreement is expected to blend cash and stock.
Adding an interesting layer to the negotiations: Monzo CFO Tom Oldham previously served as Nubank’s global head of financial planning and analysis, bringing rare internal familiarity to both sides of the table.
