Invest2 publishers3 min readPublished
Nubank's reported price for Monzo runs to 2.2 times its 2024 valuation
Monzo is in early talks to sell to Nubank at a reported £8bn to £10bn, against a £4.5bn valuation from an October 2024 employee share sale. A deal would likely end its plans to float, costing London one of the fintech listings officials hoped would revive a depleted market.
The Investor · Invest desk
What happened
- Monzo was approached by US-listed Nu Holdings and is understood to have hired Morgan Stanley and Qatalyst to advise on a possible deal.
- A purchase would give Nubank a UK banking licence and access to Monzo's 16m retail and business customers across Britain.
- In May 2025 Monzo was reported to be lining up bankers for a stock market listing at a potential £6bn valuation.
- Former chief executive TS Anil clashed with Monzo's board over the timing of a listing, pushing for an earlier date than directors wanted.
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Why it matters
- cost Nubank's shareholders would fund a purchase worth 16% to 20% of their own company's market value to gain a banking foothold in Britain.
- decision Monzo's leadership under Diana Layfield has to choose between negotiating price with Nubank and reviving a listing that split its board.
- exposure Revolut, after a year of expanding into Latin and North America, would meet Nubank in Europe, its own home region.
The size of the premium depends on the reference price. Against the £4.5bn set in the October 2024 employee share sale, the reported £8bn to £10bn is 1.8 to 2.2 times [3][10][1]. Against the potential £6bn listing, it is a third to two-thirds higher [2]. Across 16m customers, it works out at £500 to £625 each [3]. Public investors set neither benchmark: one came from an employee secondary sale [3] and the other was a reported target [14]. The reports do not say whether Nubank would pay in cash or in its own shares.
Nubank holds licences across the Americas, and its main operation in Europe is a large tech and engineering site in Berlin [6]. In my view it would be paying to skip the years it would take to win a British licence and a customer base of that size on its own. A buyer would also take over Monzo's European plans. Monzo dropped its US expansion this year and redirected its focus to Europe, starting with Spain and Ireland [8].
A sale would also settle an argument on Monzo's board. The board and investors had seen London as the likely venue for a listing, while there was speculation that TS Anil, the long-standing chief executive, leaned towards New York [19]. Anil said in October 2025 he would make way for Diana Layfield, a former Google executive, as group chief executive [17]. He then returned as vice-chair after loyalists threatened a rebellion against the chair, Gary Hoffman [20]. Hoffman confirmed last month that he will leave more than a year before his nine-year term allows [16]. Monzo declined to comment [12]. A Nubank spokesperson said: "Nubank does not comment on rumours or speculation. We reaffirm our commitment to maintaining open, clear, and timely communication regarding all significant business matters." [13]
The talks are early and were first reported by Sky News [1][5]. Sifted, citing reports, put the possible value at up to £10bn [11]. The reports concern Monzo alone. They do not show other UK fintechs choosing a sale over a listing.
The talks could collapse and the listing plan return. A deal could also land anywhere between the two ends of the reported range [10]. I think a sale anywhere in that range beats the listing for Monzo's current holders on the figures available. The counter-case is that the £6bn figure dates from May 2025 [14], and a Monzo that has grown since could float for more. If the board turned down an offer at the top of the range in order to list, it would be telling the market that insiders expect public investors to pay more than £10bn [10].
What to watch
- Whether Nubank puts a formal offer to Monzo, and at which end of the reported £8bn to £10bn range it lands.
- Who succeeds Gary Hoffman as Monzo chair, and whether the new board favours a sale or restarts a listing timetable.