The challenger bank sector is showing no signs of slowing down, with Monzo being the latest to be mentioned in reports concerning secondary share plans.
Monzo Bank has reportedly begun exploring a new private share sale at a time when other leading neobanks are making similar moves.
The UK challenger bank is said to be working with bankers at Morgan Stanley to prepare for the potential round, according to Bloomberg, which cited people familiar with the matter. The sources added the discussions are still at an early stage, with Monzo yet to decide on the structure or set a valuation target.
A private share sale, also known as a secondary sale, typically allows existing investors or employees to sell shares to new investors without the company issuing new stock. Such sales can help reassess a company’s market valuation ahead of a future funding round or Initial Public Offering (IPO).
Monzo’s decision to explore this option could be a sign the bank is testing investors following a period of strong financial growth and international ambitions. The move also places it alongside rivals such as Revolut and Starling Bank, both of which have recently made progress on secondary share sales or public listing plans.
Monzo declined Payment Expert’s request for comment on the situation.
Monzo’s recent activity
The challenger bank’s activity comes as it looks to revive its ambition to expand in the US. According to reports, two people familiar with the matter said Monzo plans to apply for a new licence from the Office of the Comptroller of the Currency (OCC), which would allow it to operate as a regulated lender.
If granted, the licence would enable Monzo to offer its full range of financial products in the US, including savings and loan services.
In June 2025, the company announced what it called a “year of expansion across Europe” following strong financial results for 2024. For the financial year ending March 31, 2025, Monzo posted revenue of £1.24bn ($1.65bn), a 48% year-over-year increase from £835m.
Interest income grew to £861m, while fee and commission income reached £329m, both driven by higher lending volumes and deposits. Gross profit climbed 55% year-on-year to £747m. However, higher personnel (£352m) and operating expenses (£334m) widened Monzo’s pre-tax loss to £60m, compared with £13.9m a year earlier.
Is there something in neobanks’ water
Monzo’s potential share sale aligns with growing activity among UK challenger banks seeking new capital or preparing for IPOs.
Revolut is reportedly under pressure from some investors to pursue another share sale. A potential deal could value the company at around $60bn, a significant rise from $45bn just six months ago.
This jump reflects expectations Revolut will post a record $1bn in pre-tax profit for 2024, nearly doubling the $545m achieved the previous year. Despite growth, Revolut has not confirmed any imminent share sale plans.
Meanwhile, Starling Bank is continuing preparations for an anticipated IPO. Its latest Companies House filing shows the creation of a holding company structure, a regulatory requirement by the Bank of England for firms preparing to list.
Starling must also submit an admission document to the Financial Conduct Authority (FCA) to list on the London Stock Exchange (LSE), which currently leads New York as the preferred destination.
Both Starling and Revolut’s recent moves suggest the UK neobank sector is entering a new phase, in which share sales and potential listings represent increased confidence by investors..
While Monzo CEO TS Anil has previously ruled out near-term IPO plans, a private share sale could be a strategic step toward that direction.
