Brazil-based Nubank is in early-stage discussions with UK-based digital bank Monzo about a potential combination that could value Monzo at between GBP 8 billion and GBP 10 billion, according to Reuters, citing a report by Sky News published on 26 September 2026. Both companies declined to comment.
According to a source close to the process cited by Sky News, a sale to Nubank is one of two options currently being explored by Monzo's board. The alternative is a new funding round, expected to value Monzo at more than GBP 8 billion, with proceeds earmarked for expansion into mainland Europe.
Two options under consideration
The two tracks set out different directions for Monzo. One would bring the company under new ownership, while the other would keep it independent, backed by fresh capital for growth outside the UK. The allocation of potential funding to mainland Europe suggests that expansion beyond the UK market is a central consideration for the company.
Either option would reprice the company well above its most recent valuation. Monzo was last valued at GBP 4.5 billion in an employee share sale in October 2024, with investors including Singapore's sovereign wealth fund GIC and StepStone Group. The lower end of the range now under discussion would represent an increase of roughly 75% on that figure, while the upper end would more than double it.
The reported valuation range follows a year of growth in both revenue and profit. According to its annual report, Monzo recorded a pretax profit of GBP 87.3 million for the year ended 31 March 2026, up from GBP 60.5 million a year earlier, an increase of around 44%. Moreover, the revenue rose to GBP 1.7 billion from GBP 1.2 billion over the same period, growth of roughly 42%.
These results mean that any transaction or funding round would be priced against a business reporting consistent profitability rather than one still working towards it, a distinction that has become increasingly relevant in how digital banks are assessed by investors and potential acquirers.
Nubank's position
According to the announcement, a deal at the upper end of the reported range would therefore be equivalent to around one-fifth of Nubank's current market value, making it a substantial transaction relative to the acquirer's size.
A combination would link a US-listed, Brazil-headquartered digital bank with a profitable UK digital bank. It would also represent a cross-regional consolidation between two digital-first banking businesses, a type of transaction that has so far been uncommon in the sector.
The talks reportedly remain at an early stage, and there is no certainty that an agreement will be reached. Monzo's board may ultimately opt for the funding route instead, in which case its plans for mainland European expansion would proceed on an independent basis.
