Monzo has held early talks with CVC and Advent International on a stake sale following the collapse of takeover negotiations with Nubank.
According to people familiar with the matter, a sale to a private equity fund has become Monzo's preferred route, and its advisers plan to approach additional fund managers. The discussions follow the end of negotiations with Brazil-based Nubank, which confirmed that it would not pursue a transaction. The two sides reportedly failed to agree on a price, with Monzo seeking a valuation of up to EUR 11.8 billion. Nubank, which is listed in New York and has a market capitalisation of approximately EUR 58 billion, will instead concentrate on Brazil and the US, where it recently obtained a banking licence.
Monzo could still raise capital through a conventional venture capital round. However, a person familiar with the board's thinking indicated that a private equity deal is favoured, as it would likely involve a larger investment and provide more capital for growth.
The search for funding follows a turbulent year marked by disputes between the board and investors over international expansion and the timing of an initial public offering. Since February 2026, Monzo has closed its US offices and redirected expansion towards Europe, opening offices in Spain and securing a European banking licence from Irish authorities.
Strategic rationale and valuation concerns
For Nubank, which launched in 2013 and serves 140 million customers mainly in Latin America, Monzo represented a potential entry point into Europe. Industry observers link the interest to competition with Revolut, which has 80 million customers and a valuation of approximately EUR 102 billion, compared with the 15 million customers Monzo reported in 2026. Both Nubank and Revolut have secured US banking licences in recent months, while Revolut has also expanded in Colombia, Mexico, and Argentina. John Cronin, an independent banking analyst, said Nubank's options in Europe were limited to acquisition or slower organic growth.
David Vélez, co-founder of Nubank, said that UK growth would be costly, citing access and cost challenges as well as limited availability of credit products.
The proposed price also drew scepticism. In a note to clients, equity research firm Autonomous described the deal as financially questionable, noting that a valuation of EUR 9.4 billion to EUR 11.8 billion would equal seven times Monzo's tangible book value, well above competitors. It added that Monzo generates approximately EUR 8 per customer each month, half the average for Nubank's Brazilian customers, and that monetising customers in the mature UK market would be difficult.
Implications for Monzo's investors
Private equity firms, lacking Nubank's strategic rationale or operations to integrate, are likely to be more price-sensitive, which could complicate a deal. As a result, existing investors may need to provide additional capital to fund Monzo's growth plans ahead of a later exit. Tom Oldham, Monzo’s chief financial officer, said that the company remained focused on expanding its customer base and would consider acquiring businesses that met customer needs and aligned with its culture.
