Monzo in Early Talks for Potential £10 Billion Sale to Nubank
Potential Acquisition and Strategic Options for Monzo
(Corrects to say Monzo was last valued at £4.5 billion in October 2024, not "last October" in final bullet point)
Early-Stage Talks Between Monzo and Nubank
Sept 26 (Reuters) - Brazil's Nubank is in early-stage talks with British digital bank Monzo about a potential combination that could value Monzo at between £8 billion and £10 billion ($10.60 billion - $13.25 billion), Sky News reported on Saturday.
Monzo's Strategic Options
- An acquisition by Nubank is one of two options Monzo's board is currently exploring, Sky News said, citing a source close to the process.
- The other option is a new funding round expected to value Monzo at more than £8 billion, with proceeds earmarked for a mainland European expansion, the report said.
Comments from Monzo and Nubank
Monzo declined to comment. Nubank could not be immediately reached for comment outside regular business hours.
Company Backgrounds and Financials
- Nubank, headquartered in Sao Paulo, is listed on the New York Stock Exchange with a market capitalisation of about $65.5 billion.
- London-based Monzo made a pretax profit of £87.3 million for the year ended March 31, up from £60.5 million a year earlier, with revenue growing to £1.7 billion from £1.2 billion, according to its annual report.
- Monzo was last valued at £4.5 billion in an employee share sale in October 2024, to investors including Singapore's sovereign wealth fund GIC and StepStone Group.
Additional Information
($1 = 0.7547 pounds)
(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Kirsten Donovan)
