Monzo turns to PE after Nubank ends takeover talks
UK digital bank Monzo is stepping up discussions with private equity firms over a potential sale of a significant minority stake after Brazilian fintech Nubank abandoned talks over a potential acquisition that could have valued the company at as much as £10bn, according to a report by the Financial Times.
UK digital bank Monzo is pursuing private equity firms in a bid to potentially sell a significant minority stake following the termination of acquisition talks with Brazilian fintech Nubank, according to a report by the Financial Times. The company has engaged in preliminary discussions with investment firms CVC and Advent International regarding the sale of up to 15% of Monzo, according to sources familiar with the matter.
Monzo now perceives a private equity investment as its preferred method for raising additional growth capital, following the collapse of negotiations with Nubank, which decided against pursuing the transaction due to disagreements on valuation. Nubank is now concentrating on expansion in Brazil and the US, having recently obtained a banking license.
A private equity deal could offer Monzo a larger capital injection compared to a standard venture funding round, while retaining existing shareholder exposure to the business. Monzo may still pursue traditional fundraising from venture investors if a sponsor transaction does not emerge. Monzo and Nubank, alongside Advent and CVC, have declined to comment on the developments.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
