Nubank Weighs Up to US$13B Monzo Deal to Open a Door Into Europe

Nu Holdings, the parent of Brazilian digital bank Nubank, is in early talks to acquire UK digital bank Monzo in a deal that could value it at US$10.5 billion to US$13.2 billion (£8 billion to £10 billion), according to Sky News, with follow-up reporting by Bloomberg and the Financial Times on September 26. Any deal would likely combine cash and Nu shares. No agreement has been reached. Nubank said it does not comment on rumors or speculation, and Monzo declined to comment. Nu is led by founder and Chief Executive Officer David Vélez; Monzo has been run by Chief Executive Officer Diana Layfield, a former Google and Standard Chartered executive, since February.

Monzo has hired Morgan Stanley and Qatalyst to review its options. A sale is one path; the other is a new equity round at a valuation above US$10.5 billion (£8 billion) to fund expansion into mainland Europe, and Axios reports that private equity firms including Advent International have discussed a minority stake. For Nu, Monzo would bring a UK banking license, an EU license obtained through Ireland in December 2025, and 16 million accounts in a region where it has no retail presence today.

Market Context

The reported price is a big jump. Monzo was valued at about US$5.9 billion (£4.5 billion) in an October 2024 employee share sale, and its board had discussed a London listing at US$7.9 billion to US$9.2 billion (£6 billion to £7 billion). In the year to March 2026, Monzo grew revenue 39% to about US$2.2 billion (£1.7 billion), posted a statutory pre-tax profit of about US$115 million (£87.3 million) and lifted deposits 55% to about US$34 billion (£25.7 billion). Forbes calculates that a top-end offer would equal roughly 115 times statutory pre-tax profit.

Nu can afford it. The company has a market value of about US$65 billion, 139 million customers across Brazil, Mexico and Colombia, and earned more than US$1 billion in a single quarter for the first time this year. It also won conditional approval from the U.S. Office of the Comptroller of the Currency in January to set up a national bank. The move puts Nu more directly against Revolut, which has about 80 million users worldwide and is pushing into Latin America and the United States.

The Signal

"We don't comment on rumors or speculation. We reaffirm our commitment to maintaining open, clear, and timely communication regarding all significant business matters." — Nubank spokesperson

Regional Relevance

For the United States, the talks show that a New York-listed Latin American bank now has the size to buy growth abroad, not just defend its home markets. U.S. investors own a large share of Nu, so a stock-heavy deal would be judged on the NYSE. The same investors are watching the race between Nu and Revolut for a U.S. customer base, where both now hold or are pursuing bank charters.

For Brazil and Latin America, a deal would be a milestone: a fintech born in São Paulo in 2013 buying one of Europe's best-known digital banks. It would test whether Nu's low-cost model, built on mass-market credit cards and lending, can work in a mature, highly competitive market.

For the United Kingdom, a sale would remove one of the main candidates the government and the London Stock Exchange were counting on to revive listings, and add to the flow of homegrown fintechs choosing private deals or U.S. markets instead.

The Other Side

Is the price justified? At up to twice its last valuation and more than 100 times statutory profit, Nu would be paying for future growth. Nu's own shares trade at about 15 times annualized earnings, so heavy use of stock could dilute existing shareholders if the growth does not come through.

Can Nu run a bank in Europe? Its only European footprint is an engineering hub in Berlin. UK and EU regulators will look closely at a foreign owner, and Monzo is still going through leadership changes, including the exit of its chair, a former CEO returning as vice chair and the departure of its EU head on September 23.

Is a sale Monzo's best option? The board is also weighing a large equity round that would keep it independent and leave the door open to an IPO later. Monzo's CFO, Tom Oldham, previously worked at Nubank, which may ease talks but will not settle the valuation gap between buyer and seller.

Sources & Transparency

• Nubank Said in Talks to Buy Monzo for Up to £10 Billion
• Nubank in talks to acquire British digital bank Monzo
• Nubank Wants To Pay Up To £10 Billion For Monzo. That Is Twice Monzo's Last Valuation And 115 Times Its Pre-Tax Profit
• Monzo in talks over £10bn sale to Nubank in blow to IPO hopes
• Monzo in talks over potential sale to Brazil's Nubank – report
• Nubank gets conditional OCC approval for charter