Monzo entered sale talks with Nubank at up to £10 billion.
Monzo, the UK app-only bank, is in early talks about a sale to Nubank that could value it at £8 billion to £10 billion, Sky News reported.
In October 2024, Monzo was valued at £4.5 billion in a share sale. The top of the new range is more than double that.
At £10 billion, a buyer would pay about 58 times Monzo's adjusted pre-tax profit of £172.6 million (10,000 ÷ 172.6). That profit rose 20%, and revenue rose 39% to £1.7 billion. The bank has 16 million customers.
Nubank's parent, Nu Holdings, is listed in New York and worth $65.5 billion. Monzo has hired Morgan Stanley and Qatalyst as advisers. A sale would likely be paid in cash and shares.
The other option is a funding round that would value Monzo above £8 billion, to pay for expansion in Europe. UK officials and the London Stock Exchange have pushed Monzo to list in London instead, Sky reported.
Monzo declined to comment. Nubank said it "does not comment on rumours or speculation."
Would your finance team pay 58 times profit for a bank that lives in an app?
Image: AI-generated.
Sources
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