Nubank’s Owner in Talks to Buy Monzo at Up to £10 Billion
Nubank owner Nu Holdings is in early talks to buy Monzo, a British digital bank, in a deal that could value the company between £8 billion and £10 billion. According to Mark Kleinman reported for Sky News, the negotiations are still at a relatively early stage.
Monzo has hired Morgan Stanley and Qatalyst for advice while Nu Holdings has also discussed potential acquisition, as per Bloomberg. A deal would likely be structured with a combination of cash and shares.
This sale option is one of two being considered by Monzo's board and shareholders, a source close to the process told Sky News. The other alternative is a new funding round at a valuation exceeding £8 billion, which would fund expansion in mainland Europe. A sale would, however, rule out an imminent listing on the London Stock Exchange, as urged by government ministers and the LSE.
Monzo boasts 16 million customers—15 million personal and one million business—and reported a 39% revenue increase to £1.7 billion in its latest annual results. Nu Holdings, listed in New York with a market value of approximately $65.5 billion, has no presence in the UK or Europe but counts 140 million customers across Brazil, Colombia, and Mexico.
Monzo's competitor, Revolut, is planning a dual listing on London and Nasdaq while another rival, Chime, recently acquired its sponsor bank in the U.S.