Monzo in early talks over possible sale to Brazil’s Nubank - Sky News

UK digital bank Monzo is reportedly in preliminary discussions with Brazil's Nubank about a potential sale, according to Sky News. The acquisition could provide Nubank, a Latin American fintech serving 135 million customers, with a significant foothold in the UK and European banking markets. Talks between Monzo and Nubank's parent company Nu Holdings are still in the early stages, and no agreement is guaranteed.

Monzo has enlisted Morgan Stanley and Qatalyst to advise on the potential transaction, which is expected to involve a combination of cash and stock. The British fintech is also exploring a separate funding round that could value the company at over £8 billion, a substantial increase from £4.5 billion in a secondary share sale in 2024.

Monzo declined to comment on the reports. Nubank, which is based in New York, has rapidly expanded across Latin America and is now pursuing growth in the U.S., but currently has no presence in the UK or Europe. Monzo's shift in strategy towards Britain and continental Europe earlier this year, following the closure of its U.S. operations, and the possibility of a sale could make the company an attractive acquisition target.