Monzo, the United Kingdom‑based digital bank, has entered preliminary discussions with Brazil’s Nubank regarding a possible sale, according to sources. The talks are at an early stage and there is no guarantee they will lead to an agreement. Monzo has engaged Morgan Stanley and advisory firm Qatalyst to evaluate the transaction, which could involve a mix of cash and Nubank stock.
If completed, the acquisition would value Monzo at more than £8 billion (about $10.6 billion), a notable increase from the roughly £4.5 billion valuation assigned to the bank in a secondary share sale in 2024. Monzo is also exploring a separate funding round that could support its European expansion. Nubank serves about 135 million customers across Latin America and is seeking growth in the United States, while Monzo claims a customer base exceeding 16 million in the UK and Europe.
The potential deal would give Nubank a foothold in Europe, complementing its existing Latin American footprint. Monzo had previously scaled back its United States operations in March, shifting focus to Britain and continental Europe under CEO Diana Layfield, who took the role in February. A sale would also remove another prospective London‑listed candidate, as Monzo had earlier considered an IPO while UK officials encouraged a local flotation. Both Monzo and Nubank declined to comment on the reports.
