Monzo, the UK FinTech that has grown to become one of the country’s most popular consumer banks, is in talks with Brazilian giant Nubank over a potential sale, Sky News reported Saturday.

Citing sources, the outlet reported the discussions are still at a relatively early stage but that Monzo has already engaged investment bankers from Morgan Stanley and Qatalyst to advise it. The deal could see the digital lender valued at between £8 and £10 billion.

Any takeover would happen through Nubank’s holding company, Nu Holdings, which is listed on the New York Stock Exchange and has a current market cap of $65.5 billion.

A source close to the deal told Sky that an acquisition by the Brazil-headquartered bank is one of two primary options being explored by the UK neobank’s board and shareholders.

The other is reportedly a more traditional funding round valuing the company at more than £8 billion, with the proceeds used to fuel further expansion across Europe. In April, the bank shuttered its small US operation and announced its intention to focus instead on growing in the UK and Europe.

This refocusing was part of a larger change in the bank precipitated by the departure of its previous chief executive, TS Anil. His resignation announcement triggered a shareholder revolt and demands for greater investor representation on the board.

Diana Layfield, Anil’s replacement, has already overseen Monzo’s expansion into European markets including Spain and Ireland.

Also on Saturday, the Financial Times reported that Monzo could be considering a third option: the sale of up to 15 per cent of the bank to private equity firms for similar reasons of growth acceleration.

The valuation of the company for a sale of any kind is unclear, an analyst told Sky, but it is likely that shareholders would seek a significant premium to its most recent formal valuation, with anywhere between £8 and £10 billion possible.

A secondary share sale in October 2024 valued Monzo at £4.5 billion. The bank’s revenue has grown significantly since then, generating £87.3 million in profits in the fiscal year to March 2026, up from £60.5 million the year before, and revenues up 39 per cent to £1.7 billion in the same period.

A sale to a foreign entity would prove a blow to the London Stock Exchange (LSE), which has long viewed the bank as a potential target for a major public debut. Sky News reported that LSE officials and government ministers have been in talks with Monzo over an initial public offering on the exchange in the next two years.

The LSE has begun to shake its reputation of failing to attract large listings in recent weeks, particularly in the FinTech space. African mobile payments company Airtel Money announced last week that it intends to float on the LSE, with a valuation that could reach between $8 and $9 billion, while Monzo’s larger rival Revolut may seek a dual listing in New York and London.

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