British digital bank Monzo is in early discussions about a sale to Brazil's Nubank that could value it at £8 billion to £10 billion, City A.M. reported Saturday, following a report by Sky News. A deal would end Monzo's long-signaled plan for a London stock market listing.

What Happened

City A.M. named Morgan Stanley and Qatalyst Partners as advisers on the discussions, which it described as early-stage. Monzo declined to comment. A Nubank spokesperson said the company does not comment on rumors or speculation.

The talks are not the only option in front of Monzo's board. Finimize, summarizing the reporting, said the board is weighing a deal with Nubank against a new funding round to finance expansion into mainland Europe.

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Why It Matters

The price under discussion would mark a sharp rerating. Monzo was last valued at £4.5 billion in an October 2024 secondary sale of employee shares, according to City A.M. Finimize reported that Monzo generated £1.7 billion in revenue and £87.3 million in pretax profit in its latest financial year to March 31, giving a buyer a business that is already profitable at scale.

For Nubank, which is listed in New York and valued at about $65.5 billion, Monzo would provide a UK banking license, 16 million retail and business customers and a base from which to expand across Europe. City A.M. said the deal would position Nubank to compete more directly with Revolut, the London-based fintech that has pushed into markets on several continents.

Context

Monzo had been preparing for an initial public offering, with a potential valuation of around £6 billion reported in May 2025, and London was widely seen as the likely venue. A sale to an overseas buyer would add to a drought of major fintech listings in the UK, a setback for government and exchange efforts to persuade high-growth technology companies to list in London rather than New York.

Monzo's strategy has also shifted. City A.M. said the bank dropped its U.S. operations earlier this year and turned its expansion efforts to Europe, including Spain and Ireland. Its investors include Singapore's sovereign wealth fund GIC and StepStone Group, according to Finimize.

Any acquisition of a UK bank would need approval from British regulators, including a change-in-control review by the Prudential Regulation Authority, a process that typically takes months.

What to Watch

Key questions are whether the talks progress to a formal offer, whether rival bidders or private equity investors emerge with an alternative, and how Monzo's shareholders weigh a sale against a funding round that preserves independence. A confirmed deal would also show what price scaled, profitable neobanks can command at a time when public listings in London remain scarce.