Monzo in talks to sell to Nubank at about £10 billion valuation, Sky News says

• Monzo's board is exploring two options: acquisition by Nubank or a new funding round exceeding £8 billion valuation for mainland European expansion
• Monzo reported £87.3 million pretax profit for the year ended March 31, up from £60.5 million, with revenue growing from £1.2 billion to £1.7 billion
• The potential valuation represents significant growth from Monzo's £4.5 billion valuation in October employee share sale

Summary

Key Development: Brazilian digital bank Nubank is in early-stage acquisition talks with UK-based Monzo, potentially valuing the British fintech at £8-10 billion ($10.60-$13.25 billion), according to Sky News sources.

Strategic Options: Monzo's board is weighing two alternatives:

1. Acquisition by Nubank at the stated valuation
2. A new funding round exceeding £8 billion to finance mainland European expansion

Company Profiles:

• Nubank: São Paulo-headquartered, NYSE-listed with a market capitalization of approximately $65.5 billion
• Monzo: London-based digital bank showing strong financial performance

Financial Performance (Monzo):

• Pretax profit: £87.3 million for year ending March 31 (up from £60.5 million year-over-year)
• Revenue: £1.7 billion (versus £1.2 billion prior year)
• Previous valuation: £4.5 billion in October employee share transaction

Market Implications: The potential deal represents significant consolidation in the digital banking sector, with Latin America's largest fintech seeking expansion into European markets. The proposed valuation more than doubles Monzo's October assessment, reflecting strong growth trajectory and investor appetite for profitable neobanks. If completed, this would mark a major cross-continental fintech acquisition and could accelerate Nubank's international growth strategy while providing Monzo with resources and scale for European expansion.

Status: Both companies declined or were unavailable for comment. Discussions remain at preliminary stages with no confirmed timeline.