Nubank Eyes Monzo in Deal That Could Value UK Digital Bank at £8 Billion to £10 Billion
Monzo has grown rapidly since its last private valuation, with revenue, deposits and customers all increasing. The reported talks come as the UK digital bank weighs further expansion and a potential new round of funding.
Brazilian digital bank Nubank is in early-stage talks over a potential combination with UK digital bank Monzo that could value the British lender at £8 billion to £10 billion, Sky News reported on Saturday. The discussions are still at an early stage, and there is no indication that an agreement has been reached.
A transaction at that valuation would be well above Monzo’s last reported valuation of £4.5 billion, set during an employee share sale in October 2024. Since then, the bank has continued to grow its customer base, deposits, and revenue as it expands beyond its original focus on the UK market.
Monzo reported £1.7 billion in revenue for its financial year ended march 2026, up from £1.2 billion a year earlier. Adjusted profit before tax reached £172.6 million, while customer deposits rose to £25.7 billion. The bank added 3 million customers during the year, taking its total to 15.2 million, while monthly active users reached 10.4 million. Monzo said 49% of its monthly active users use the bank as their primary bank.
The lender has also started building its presence in Europe. Monzo received a banking licence from the Central Bank of Ireland and launched its European operations, giving it a regulated base for further expansion in the region. A combination with Nubank would bring Monzo’s UK and European business into a group that already has a large digital banking operation across Latin America.
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Monzo also has another option
A combination with Nubank is not the only option being considered. Sky News reported that Monzo is also looking at raising new capital at a valuation above £8 billion as it continues its expansion. The company could, therefore, continue as an independent bank if the reported talks with Nubank do not lead to an agreement.
For now, the £8 billion to £10 billion figure remains part of preliminary discussions rather than an agreed transaction value. The terms could change if the talks progress, while there is also no certainty that a deal will be completed.
