Last Updated on September 29, 2026 by TMB
UK-based digital bank Monzo has reportedly begun talks with Nu Holdings after the Brazilian digital banking group reached out to discuss a potential acquisition. Reports say the potential transaction values Monzo at between £8bn and £10bn ($10.5 billion – $13.2 billion).
Monzo to Raise Cash for Expansion
According to an FT report, two people familiar with the matter have confirmed the talks, with one confirming the value range. The other person revealed other details, including a possible sale of a significant stake to one of a few private equity firms currently in talks with Monzo. The report says Monzo could sell up to 15% to raise cash to boost growth. While these options are still being considered, Monzo could also use a regular fundraising method to raise cash from investors in exchange for smaller stakes.
At the moment, Monzo has retained Morgan Stanley and Qatalyst for advisory services.
Monzo’s customer base includes 16 million accounts: 15 million consumer banking accounts and 1 million business accounts. In its last secondary fundraise in October 2024, the transaction valued the company at £4.5bn. A few months earlier, Monzo reported its first annual profit, £15.4 million for the fiscal year ended March 31. The year before, it recorded a £116 million loss. Now, the lower end of the current valuation range is more than 77% higher than the valuation at the previous share sale.
Nu Holdings Pursuing Global Expansion
Nu Holdings is reportedly seeking a Monzo deal to expand across the EU via an established British bank. Nu has already begun expanding outside Brazil, as it announced the official launch of Nu US. In an official announcement, Nu described the United States as the world’s largest financial services market, with retail banking revenues rising to $1.2 trillion at a 7% CAGR from 2019 to 2024. However, according to Nu, financial institutions collect about $82 billion from customers in annual fees. Co-Founder and CEO of Nu US, Cristina Junqueira, said the US arm offers several features, including a metal credit card with unlimited cashback, high yield on user accounts, and quick domestic and international payments with no fees.
In addition to Nu US, Nu Holdings announced a digital account it calls Nu Global, which caters to people who need to move money quickly across borders. A multi-currency digital account, Nu Global offers cross-border transaction services across 35 countries. Like the US service, Nu Global processes transactions free of charge and has begun with Europe and Latin America. The plan is to launch in Mexico, the US, Brazil, and Colombia sometime in the next few months. In addition to multiple fiat currencies, customers can also hold a range of supported digital assets, including Bitcoin (BTC) and Ethereum (ETH).
