Monzo will not become a part of Nu Holdings and Nubank, and will now pursue additional capital from investors, perhaps to revive its IPO plans that have been in the works for the last several years.
Monzo is seeking to bring in new investment by selling off stakes to increase its valuation following Nubank’s announcement it will not pursue an acquisition of the UK bank.
Among the firms that have reportedly already registered their interest in acquiring a stake in Monzo includes private equity firm TPG, as well as Advent International and DE Shaw.
Early indications from reports suggest Monzo is targeting a £8bn valuation from the share sales. This was one of several options being tabled by Monzo boardroom and executive members after the sale talks with Nu Holdings were scrapped.
Monzo could sell as much as 15% to private equity and venture capital firms to accelerate its European expansion. This also aligns with its other option; holding a new funding round to invite more investors to provide additional capital.
Some of Monzo’s existing major investors include Passion Capital with a 25% stake, as well as Tencent, Capital G and Google Ventures.
In April 2024, Monzo raised $430m in a funding round led by Capital G, Google Ventures and GIC for a post-money valuation of $5bn. Further investment came in the form of $190m from Hedosophia and GIC, bringing total funding to $620m, setting a valuation benchmark of $5.9bn (£4.5bn).
Nubank ends Monzo sale talks
After widespread reports linked Nu Holdings, the parent company of Latin American digital bank Nubank, with the acquisition of Monzo, the company dismissed it was looking to acquire the UK bank.
In a statement released on 30 September, Nu Holdings stated that while it has a “great deal of respect for Monzo, the company is not pursuing a transaction with Monzo”.
“In the normal course of business, Nu regularly evaluates opportunities that could support its growth and long-term objectives, including partnerships, investments and acquisitions,” said Nu Holdings in its statement.
“Nu is highly confident and focused on its strategic priorities: deepening its position in Brazil, scaling its businesses in Mexico and Colombia, and building its presence in the United States and around the world through Nu Global.”
Upon the reports of Nu Holdings’ interest in Monzo on 28 September, its stock on the New York Stock Exchange slumped by 10%, losing $6.6bn to its $60bn market capitalisation.
After issuing its statement dismissing the Monzo acquisition reports, Nu Holdings’ stock recovered by as much as 6% in after-hours trading.
Are Monzo’s IPO plans revived?
Monzo seeking extra capital through share sales and funding rounds could lead to the UK bank revive its initial public offering (IPO) plans it has been connected with for the last several years.
Many companies launch funding rounds and share sales before IPOs to help leverage the extra capital for regulatory costs and reporting systems. This additional capital also allows companies to delay public market listings if economic conditions are not suitable.
In its most recent annual financial report, Monzo posted revenues of £1.7bn ($2.28bn) in the financial year ending 31 March 2026, posting a pre-tax profit of £172.6m, record numbers for the bank.
Gross profit for 2025 was over £1bn, with average revenue per active customer reaching £183 across both personal and business accounts.
The strongest reports of Monzo preparing for an IPO came in May 2025. Monzo was reportedly negotiating with investment banks to prepare its stock market debut, targeting a valuation of £6bn.
However, at the time boardroom members were reportedly butting heads over the location of the public listing primarily over two exchanges; the London Stock Exchange and the New York Stock Exchange.
Former CEO, TS Anil, was reportedly in favour of a US listing, whilst Gary Hoffman, the ex-Chairman of the Board who left in September 2026, wanted the IPO to happen in the UK.
Current Monzo CEO, Diana Layfield, has not commented on Monzo making a public market debut. Her arrival as Anil’s successor was reported at the time she would spearhead Monzo’s international expansion, which has since seen the bank pullout of the US market and focus on expanding in Europe.
