Nu in talks to buy Monzo for up to £10B
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Nu Holdings (NYSE: NU) has reportedly held talks to acquire Monzo in a potential deal that could value the British digital bank at £8 billion to £10 billion.
Why it matters: A deal would give Nu an established British bank and a licensed platform for expansion across the EU.
The big picture: Nu's expansion beyond Brazil is already underway.
- Nu began rolling out U.S. banking products through partner Lead Bank earlier this month. It separately received conditional approval for its own U.S. bank charter in January.
- It began operating as a full bank in Mexico in August and had more than 5 million customers in Colombia by the end of June.
Driving the news: Monzo has hired Morgan Stanley and Qatalyst to advise it as it considers strategic options, including a full sale, a new funding round or a potential minority stake sale to private equity firms.
- Sky News reported Sunday that Advent International is among several buyout firms that have held initial talks about buying a minority stake.
By the numbers: Monzo reported £1.7 billion in FY2026 revenue, up 39%, and £172.6 million in adjusted pretax profit, up 20%.
- It had £25.7 billion in deposits and 15.2 million customers as of March 31, according to its annual report.
- Nu reported 139 million customers worldwide at the end of June and topped $1 billion in quarterly net income for the first time, according to its latest results.
State of play: Monzo closed its U.S. accounts in June to refocus on the U.K. and Europe.
- Diana Layfield took over as CEO from TS Anil in February, with Anil moving to board vice chair in March.
- Gary Hoffman stepped down as chair in September, with Karen Peacock serving as interim chair of Monzo's parent company board.
What we're watching: A finalized deal will show if Monzo's board believes a sale at the reported valuation beats funding its European expansion independently.
Ryan Lawler covers fintech for Axios Pro Deals.
