Brazilian digital bank Nubank is in early-stage discussions over a possible combination with Britain’s Monzo that could value the UK lender at between £8 billion and £10 billion, equivalent to approximately $10.6 billion to $13.25 billion.
Sky News first reported the discussions, with Reuters subsequently confirming the details of the report. The negotiations remain preliminary, and no transaction has been announced.
An acquisition by Nubank is only one option being considered by Monzo’s board.
The alternative is a new funding round expected to value Monzo above £8 billion, with proceeds potentially supporting the digital bank’s expansion into continental Europe.
Monzo declined to comment on the takeover report, while Nubank could not immediately be reached by Reuters outside regular business hours.
The potential valuation represents a substantial increase from Monzo’s £4.5 billion valuation in an October 2024 employee share sale.
Monzo’s underlying business has also expanded. The bank generated pretax profit of £87.3 million for the year ended March 31, up from £60.5 million a year earlier, while revenue increased to £1.7 billion from £1.2 billion.
Nubank, headquartered in São Paulo and listed on the New York Stock Exchange, had a market capitalization of approximately $65.5 billion in the latest Reuters report.
A combination would represent significant cross-border consolidation in digital banking, pairing Nubank’s scale in Latin America with Monzo’s large UK franchise and European expansion ambitions.
But the central fact for investors remains that there is no agreed transaction.
The next development to watch is whether preliminary discussions advance into formal negotiations or whether Monzo instead chooses to raise additional capital and continue independently.
