Nubank targets Monzo acquisition
Nubank holds preliminary acquisition talks with Monzo in a deal valuing the UK bank up to £10 billion.
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Brazilian fintech Nubank is in preliminary discussions about acquiring UK digital bank Monzo, a deal that could value Monzo at £8 billion to £10 billion. Monzo is also weighing a new funding round at a valuation above £8 billion, with proceeds intended to support expansion into mainland Europe; no deal has been finalized. Monzo has about 16 million customers and reported pretax profit of £87.3 million and revenue of £1.7 billion for the year ended March 31, both up from the prior year. The proposed valuation would be substantially higher than Monzo’s £4.5 billion valuation in an October 2024 share sale.
Key Points
1
Monzo has hired Morgan Stanley and Qatalyst to advise it, and outline terms of a potential deal are reportedly being negotiated.
2
If a transaction proceeds, banking sources say it could be structured as a combination of cash and stock.
3
Of Monzo’s 16 million customers, 15 million use its personal banking services and 1 million use its business banking services.
4
Nu Holdings, Nubank’s parent, has a market capitalisation of about $65.5 billion, making a Monzo acquisition a cross-border expansion by a substantially larger fintech.
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