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Latin America’s biggest neobank has outgrown its home turf and now wants to conquer Europe. Nubank is in talks to acquire the British digital bank Monzo, which could be valued at £8 billion to £10 billion (about €9 billion to €11.5 billion) in a deal, according to Sky News, City AM reports. The talks are said to be at an early stage. “Nubank does not comment on rumors or speculation,” the Brazilian company said.
More Than Twice What It Was Worth Two Years Ago
For Monzo, the deal would be a huge leap. The London-based neobank was last valued at £4.5 billion in October 2024 in a share sale by employees, so a sale to Nubank would more than double its value. Monzo is being advised by Morgan Stanley and Qatalyst Partners, according to City AM.
The British bank’s numbers are impressive, UKTN reports:
- Revenue: It rose 39 percent to £1.7 billion (about €1.95 billion) in the fiscal year through March.
- Profit: Pretax profit climbed 20 percent to £172.6 million (about €200 million).
- Customers: Monzo has about 15 million personal and business customers, including 10.4 million monthly active users.
- Deposits: Its accounts hold about £25.7 billion (nearly €30 billion).
A sale would, however, bury Monzo’s long-held plans to go public. As recently as May 2025, Monzo was reported to be preparing a London listing at a valuation of about £6 billion. The timing sparked fierce internal disputes: longtime chief executive TS Anil was pushed out in October 2025 but returned as vice chair after pressure from shareholders. Diana Layfield has run the bank since then, and chairman Gary Hoffman recently announced he is stepping down.
Why Nubank Wants Monzo
Nubank plays in a different league. The neobank founded by David Vélez, which went public in New York in 2021, is now valued at about $65 billion (about €56 billion). In the second quarter, it topped $1 billion in net income for the first time, according to its quarterly results. Its growth at a glance:
- Brazil: About 118 million customers, well over half of the adult population.
- Mexico: About 16 million customers.
- Colombia: More than 5 million customers.
- Total: Nearly 139 million customers, up 13 percent from a year earlier.
That means Nubank is slowly reaching its limits in Latin America, and its next growth spurt has to come from abroad. That is exactly what Vélez is working on: just a few weeks ago, Nubank launched in the United States with an account paying 3.5 percent interest, a cash-back credit card and free transfers to Latin America. It has already received conditional approval for a U.S. bank charter. At the same time, the company introduced Nu Global, an account for people who move between countries, with balances held in the stablecoins USDC and EURC.
In Europe, by contrast, Nubank has barely any presence beyond an engineering hub in Berlin. Monzo would change that overnight, giving Nubank a British banking license, a profitable customer base and a well-known brand without spending years building its own.
The Road to Europe
Monzo also wants to expand into Europe on its own. Brexit complicates that, though: a British banking license is not valid in the E.U., so the continent requires a separate license in an E.U. country. Nubank could help with its capital and speed up that expansion. According to Startup Fortune, Monzo is also exploring a funding round at a similar valuation as an alternative to a sale, which would let it finance its expansion on the continent independently.
Several hurdles remain before any deal. Britain’s regulators, the P.R.A. and the F.C.A., would have to approve it, along with authorities in Brazil and the United States. Monzo’s shareholders would also have a say, including venture capital firms and thousands of small investors who bought in through crowdfunding campaigns.
A Challenge to Revolut
If the deal goes through, Revolut would face a new rival. With more than 75 million customers, the British neobank is the undisputed leader in Europe and is pushing hard into new markets itself, including with a U.S. banking license and a Swiss banking license. Berlin-based N26 and the Dutch bank bunq are also competing for customers in Europe.
With Monzo behind it, Nubank could become the first neobank group to play a major role in Latin America, the United States and Europe at the same time. For Europe’s fintech scene, it would also send a signal: one of the continent’s most successful neobanks would end up in Brazilian hands instead of listing in London.
