UK-based Monzo Bank has reportedly been exploring a new private share sale, with the digital lender collaborating with bankers at Morgan Stanley.
Monzo is alleged to have been preparing for the potential new round and to determine interest from investors, according to people familiar with the matter who spoke under anonymity due to the plans being private, cited by Bloomberg. At the time of writing, the share sale was still in early stages, and the company had not agreed on a structure or a valuation target.
The move comes amid a rise in fintech companies looking to increase their valuation and prepare for a potential public listing. For example, Revolut, together with its backers, was just recently working on finalising a USD 3 billion fundraising, which would value the company at nearly USD 75 billion. Managed without bankers, the round was oversubscribed, and sources acquainted with the matter at hand said that the deal combined new funding with a secondary share sale, offering liquidity to early backers and employees.
Just last year, Monzo secured USD 190 million, bringing its total to USD 610 million in funding, with Capital G, Alphabet Inc.’s independent growth fund, and new investors participating in the round. Soon after this, the company organised a secondary sale for its employees. This brought its valuation to USD 5.9 billion.
Now, according to the aforementioned sources, the share sale being planned with Morgan Stanley is considered a preparation for an eventual IPO that could value Monzo at approximately USD 8 billion. Since the start of its operations, when the fintech set a goal of developing a transparent, user-centric digital bank, Monzo has expanded substantially, reaching profitability while also growing its operations, mainly supported by revenues brought by subscriptions, lending, and transaction fees. Currently, the fintech’s services are leveraged by 13 million customers, with it reporting a pretax profit of nearly USD 80 million for the fiscal year through March 2025.
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Besides its alleged private share sale plans, Monzo recently focused its attention on growing its capabilities and expanding its presence. Just a few weeks ago, at the beginning of October 2025, the fintech was reportedly considered a renewed attempt to secure a US banking licence. This came after four years, with Monzo making similar efforts that failed to gain traction with US regulators. If successful, the move would come as a return to one of the company’s international ambitions, as it aimed to solidify its presence in the largest banking market.
