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Monzo weighs IPO options amid internal debate over US vs UK listing

Tuesday 21 January 2025 13:21 CET | News

UK-based fintech Monzo has been exploring options for a market listing, with discussions divided between pursuing an IPO in the US or its home market.

 

According to sources cited by the Financial Times, Monzo’s CEO is advocating for a US listing, citing its appeal to global investors, while the company’s board leans toward floating in the UK, where the digital bank has a significant customer base of over 10 million. These preliminary discussions are ongoing, and no final decision has been made at the time of writing. 

The banking app, backed by investors such as Alphabet’s CapitalG and China’s Tencent, was valued at USD 5 billion in 2024. Monzo is currently working to become ‘IPO ready’ by the end of 2025 but is not expected to proceed with the listing before 2026, according to the Financial Times. Preparations reportedly include enhancing governance and completing necessary paperwork.

 

UK-based fintech Monzo has been exploring options for a market listing, with discussions divided between pursuing an IPO in the US or its home market.

 

Implications for UK and global markets 

A decision to list outside the UK could have wider implications for the London Stock Exchange, which has struggled to attract significant IPOs in recent years. Data from Dealogic indicates that companies raised historically low levels of capital in London last year, partly due to concerns about liquidity and valuations in the UK market. 

The fintech sector is considered a potential bright spot for the London market, with companies such as Monzo, Revolut, and Starling expected to go public in the near future. However, Revolut CEO Nik Storonsky has previously expressed a preference for a US listing, leaving uncertainty about where Europe's leading neobanks will ultimately debut. 

Despite withdrawing its US banking licence application in 2021, Monzo has continued to pursue growth in the region through alternative methods. Its USD 430 million funding round in 2024, led by CapitalG, is intended to support US expansion plans, including a banking partnership model to avoid the licencing process. 

Monzo reported its first annual profit last year, driven by rising interest rates and increased revenue from transactions and subscriptions. Alongside its IPO preparations, the company is expanding into Ireland by establishing a Dublin office.


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Keywords: fintech, IPO, banking, online banking
Categories: Banking & Fintech
Companies: Monzo
Countries: United Kingdom
This article is part of category

Banking & Fintech

Monzo

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