Nubank considers $13.2 billion bid for Monzo
Nubank is weighing a bid of up to £10 billion ($13.2 billion) to acquire Monzo, according to the Financial Times on September 26. The FT reported three options for Monzo: a cash-and-shares takeover valuing it between £8 billion and £10 billion, a private‑equity stake sale of up to 15%, or a venture‑style funding round.
Nubank, valued at $65 billion and serving 140 million customers across the Americas, would gain a foothold in Europe through the deal. Monzo recently exited the United States, closing its U.S. operations under new CEO Diana Layfield, who took office in February, and is now focusing on Ireland and Spain. The FT noted that the talks come amid leadership changes at Monzo, including the departure of board chairman Gary Hoffman after CEO TS Anil’s surprise resignation last year. The private‑equity option would allow investors to acquire up to a 15% stake, providing Monzo with immediate cash to fuel its growth plans.
“Nubank does not comment on rumors or speculation. We reaffirm our commitment to maintaining open, clear, and timely communication regarding all significant business matters,” Nubank spokesperson said.
Earlier this year, PYMNTS reported that Monzo’s withdrawal from the U.S. followed a period when Monzo had been rethinking an American banking license. The FT added that selling Monzo to Nubank would be a blow to the London Stock Exchange, which has been courting Monzo for a listing. Nubank has recently obtained a banking license in the United States, supporting its broader international expansion ambitions.
What we know
Such a deal would value Mozno at up to £10 billion ($13.2 billion), the Financial Times (FT) reported Saturday (Sept. 26), citing two sources familiar with the matter.
Sources told the FT there are three different options facing Monzo. First is a takeover via a mix of cash and shares, valuing Monzo at between £8 billion and £10 billion.
Another source said Monzo had been in talks with private equity companies about selling as much as a 15% stake in the business to generate cash to fuel its growth.
The FT report added that selling Monzo to Nubank – valued at $65 billion, with 140 million customers throughout the Americas – would be a blow to the London Stock Exchange, which has been courting Monzo for a listing.
New CEO Diana Layfield, who began her tenure in February, has shut down Monzo’s business in the U.S. as the company focuses on Europe, launching operations in Ireland and Spain.