UK neobank Monzo reportedly eyeing raise at £7.5bn valuation

British neobank Monzo is reportedly seeking a fundraising round to value the company at approximately £7.5 billion pounds, following the failure of an acquisition bid by Brazilian lender Nubank. The potential funding round, reported by the Financial Times on November 5, comes after discussions for a Nubank takeover fell through due to valuation disagreements. Nubank, listed as Nu Holdings on the New York Stock Exchange, was anticipated to have valued Monzo between £8 billion and £10 billion in an acquisition deal.

Monzo had targeted a £8 billion valuation after selling a portion of the business. The company was last valued at £4.5 billion following an employee share sale in 2024. The reported fundraising efforts follow the recent departure of Monzo’s group CEO TS Anil and EU CEO Michael Carney. Anil was replaced by Diana Layfield, a former Google general manager and chair of UK investment group British International Investment.

In March, Monzo announced plans to close its US operations to focus on growth in the UK and Europe after achieving the first European banking license for a digital bank. The firm launched in Ireland in April with approximately 100,000 users on a waitlist for its services. Monzo also announced an €83.5 million investment into its Irish operations in March, aiming to double its workforce in the country to 70 by mid-2027.

The company currently employs 5,275 people, according to its latest annual report. Monzo faced a £21 million fine from the UK government last year for lapses in financial crime mitigation measures on its platform.