Nu Holdings, the Brazilian parent company of Nubank, is in early-stage discussions to acquire UK digital bank Monzo. The potential deal could value Monzo at between £8 billion and £10 billion, but the talks are preliminary and may not lead to an agreement. A deal would likely involve a mix of cash and stock.
Monzo is also exploring other strategic options, including a new funding round to support its European expansion. It is considering selling a significant stake of up to 15% to private equity firms.
An acquisition would give Nu Holdings a strong foothold in the UK and European markets. Monzo was valued at £4.5 billion in an October 2024 share sale. A sale would represent a substantial increase on that valuation and could end speculation about a London IPO.