Monzo Courts Private Equity After Nubank Walks Away
Monzo is exploring private equity funding after Nubank ended talks over a potential deal, with buyout firms considering a minority stake in the UK digital bank.
Monzo is stepping up efforts to secure private equity investment after Nubank walked away from preliminary talks over a potential takeover of the UK digital bank.
The Financial Times reported on Friday that Monzo has held early-stage discussions with European buyout group CVC and US private equity firm Advent International over the sale of a significant minority stake.
Monzo is seeking to sell as much as 15% of the company, according to people familiar with the discussions.
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The move follows Nubank’s decision not to pursue a transaction with Monzo. Nubank’s parent, Nu Holdings, confirmed on September 30 that it was not pursuing a deal with the British fintech.
Monzo had reportedly been discussing a transaction that could have valued the company at up to £10 billion. The talks ended after the two sides failed to agree on a price, according to the Financial Times.
Private equity firms had already shown interest in Monzo before Nubank ended its discussions. Sky News reported last week that Advent International was among several buyout firms that had held initial talks over acquiring a minority stake.
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Monzo could also raise money through a conventional equity funding round if the private equity discussions do not result in a deal.
The UK digital bank reported a 39% increase in revenue to £1.7 billion in its latest annual results, while adjusted pre-tax profit rose 20% to £172.6 million. Its customer base has grown to more than 16 million.
Monzo was valued at £4.5 billion in a secondary share sale in October 2024. The company has since been pursuing further growth in Europe under chief executive Diana Layfield.
No private equity transaction has been announced, and discussions with potential investors remain at an early stage.
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