Monzo explores private equity stake sale after Nubank talks end

Monzo has held early-stage discussions with CVC and Advent International about a potential stake sale after takeover talks with Nubank ended. According to people familiar with the matter, selling a stake to a private equity investor has become the bank's preferred funding route.

Monzo's advisers are expected to approach additional fund managers. The bank could still raise capital through a conventional venture capital round, but a private equity transaction is seen as more likely to provide a larger investment and additional funding for growth.

Nubank talks ended over valuation

Nubank confirmed that it would not continue discussions about a transaction with Monzo. The two companies reportedly failed to agree on valuation, with Monzo seeking a price of up to EUR 11.8 billion.

Nubank is listed in New York and has a market capitalisation of approximately EUR 58 billion. The company will instead focus on Brazil and the US, where it recently obtained a banking licence.

Monzo redirects international expansion toward Europe

The funding discussions follow a difficult period involving disagreements between Monzo's board and investors over international expansion and the timing of a potential IPO. Since February 2026, the bank has closed its US offices and redirected its international strategy toward Europe.

Monzo has opened offices in Spain and secured a European banking licence from Irish authorities. The shift gives the company a new base for further European expansion while reducing its direct operational focus on the US market.

Nubank had viewed Monzo as a possible route into Europe

Nubank, founded in 2013, serves around 140 million customers, mainly in Latin America. Monzo could have provided the Brazilian group with a faster entry into the European banking market.

The strategic context also includes competition with Revolut, which has around 80 million customers and a valuation of approximately EUR 102 billion. Monzo reported around 15 million customers in 2026.

Both Nubank and Revolut have received US banking licences in recent months. Revolut has also expanded into Colombia, Mexico and Argentina.

Independent banking analyst John Cronin said Nubank's options in Europe were limited to an acquisition or slower organic expansion. Nubank co-founder David Vélez also indicated that growth in the UK would be expensive because of market access, costs and limited availability of credit products.

Valuation remains a key issue

Autonomous raised questions about the economics of a possible Nubank transaction. The equity research firm said a valuation between EUR 9.4 billion and EUR 11.8 billion would represent around seven times Monzo's tangible book value, significantly above comparable companies.

Autonomous also noted that Monzo generates approximately EUR 8 per customer each month. This is around half the average generated by Nubank's customers in Brazil, while increasing revenue per user in the mature UK banking market could be difficult.

Private equity investors may take a different view on price

Private equity firms do not have the same strategic rationale as Nubank or an existing banking operation that could be integrated with Monzo. This means potential investors may be more price-sensitive during negotiations.

If a transaction cannot be agreed, existing shareholders may need to provide more capital to finance Monzo's growth ahead of a future exit. Chief Financial Officer Tom Oldham said the bank remains focused on increasing its customer base and would consider acquisitions that meet customer needs and fit Monzo's culture.