Monzo is in early-stage talks with Nubank, the Brazilian digital bank, over a potential sale that would value the UK bank at between £8bn and £10bn, and is also reported to be in discussions with private equity firms including Advent International about a deal at a similar valuation.

Sky News, which first reported the options being considered by Monzo’s board, said a takeover by Sao Paulo-based Nubank would be funded by a combination of cash and shares. A deal with Advent, an American buyout firm with more than $100bn in assets under management, could also value Monzo at as much as £10bn, according to Sky.

A third option, a venture capital-led investment to help fund expansion in Europe, is also understood to be under consideration. A private equity deal may be viable only if the Nubank talks do not proceed, Sky reported.

Nubank, Monzo and Advent declined to comment.

Monzo was last valued at £4.5bn in an employee share sale in October 2024, when investors including GIC, Singapore’s sovereign wealth fund, and StepStone Group bought shares. A deal at £10bn would be more than double that figure.

The bank reported revenue of £1.7bn for the year to 31 March 2026, up 39 per cent, and adjusted profit before tax of £172.6m, up 20 per cent, according to its annual report. It said it added three million customers during the year, taking its total to 15.2 million, and that it had expanded into Europe after obtaining a banking licence from the Central Bank of Ireland.

Founded in 2015, Monzo now has about 16 million customers, of whom 15 million are consumers and about one million are business banking customers, and it employs more than 5,000 people. It is understood to be advised by Morgan Stanley and Qatalyst, the technology-focused investment bank.

Diana Layfield, a former Google executive, was named as Monzo’s chief executive last year, replacing TS Anil after boardroom unrest. Anil has remained on the board as vice-chairman after some of the bank’s venture capital backers protested over his departure.

Nubank, which is listed in New York and trades outside Brazil as Nu, describes itself as the largest digital bank in Latin America. It reported 139 million customers across Brazil, Mexico and Colombia at the end of June and net income of $1.1bn for the second quarter, according to its results filing with the US Securities and Exchange Commission. It has a stock market value of about $66bn and is regarded as a competitor to Revolut.

A takeover of Monzo would be Nubank’s first push into Britain. The company has also been reported to have considered moving its legal registration to the UK.

A sale to Nubank would take Monzo, which has been widely expected to be a flotation candidate, out of the running for a London listing. The London Stock Exchange has seen a dearth of flotations since a post-pandemic flurry of new listings in 2021.

Ministers have been trying to keep high-growth companies listing in London. In January the government made a £25m investment in Kraken Technologies through the British Business Bank as part of what it said was a £125m package to help scale-up companies grow and list in the UK.

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