Monzo Weighs Venture Funding Round After Nubank Deal and Private Equity Talks Stall

London-based digital bank Monzo is considering a venture capital funding round at a valuation of 7.5 billion pounds (about $10.1 billion). According to the Financial Times, citing unnamed sources, the company reached this point after failing to complete a takeover by Nubank and to sell a minority stake to private equity funds. Talks with Nubank at a valuation of 10 billion pounds broke down, while discussions with investment funds about a stake sale at 8 billion pounds have stalled. Monzo did not respond to PYMNTS' request for comment.

What happened in the talks

In September, reports emerged that Nubank was weighing a bid for Monzo valuing it at up to 10 billion pounds. Nu Holdings, Nubank's parent company, responded in a regulatory filing on September 30, saying that "while we have a great deal of respect for Monzo, the company is not pursuing a transaction with Monzo." At the same time, according to the same reports, Monzo was discussing with private equity firms the sale of up to a 15% stake to raise funds for growth. A third option reportedly involved a "venture capital-style" round in which investors would take smaller stakes.

Valuation and previous deals

Monzo was last valued at 4.5 billion pounds (about $6.1 billion) in an employee share sale in 2024. The proposed venture valuation of 7.5 billion pounds would be above that mark but below the figures discussed in talks with Nubank and private equity investors.

Business restructuring and leadership

In March, Monzo announced it was exiting the U.S. market, where it had a limited presence for several years, to focus on countries where it already has scale and a regulatory footing. In August, it was reported that chairman Gary Hoffman, who joined the company in 2019, was leaving after shareholders lobbied for his removal. The board had earlier removed TS Anil as CEO, and investors subsequently called for Hoffman's ouster.