The City of London could be dealt a multi-million-pound blow amid reports that UK fintech darling Monzo may not have an initial public offering (IPO) on the stock exchange.
It is understood that the British digital bank has entered preliminary discussions about a potential takeover by Nubank, the Brazilian fintech powerhouse currently valued at $65.5billion (£49.3billion).
The potential of sale could come with a price tag of between £8billion to £10billion, Sky News reports.
If the acquisition proceeds, it would deal a serious blow to ambitions to see the challenger bank float on the London Stock Exchange.
Monzo is one of several rapidly expanding UK fintechs that government officials and City figures had been counting on to reinvigorate London’s diminished public markets.
Nu Holdings, Nubank’s US-listed parent company, initiated the approach, according to reports. Monzo’s last formal valuation stood at £4.5billion, established in October 2024 through a secondary share sale involving employees.
Nubank, by contrast, floated on the New York Stock Exchange at the close of 2022 and has since grown to command a market capitalisation of $65.5bn, equivalent to roughly £49.4billion.
The British firm is understood to have brought in Morgan Stanley and Qatalyst as advisers to evaluate the potential transaction. Sky News was first to report that conversations between the two fintech firms were under way.
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Sky News was the first to report that the two fintech firms were in talks. The discussions remain at an early stage, with no certainty that a deal will materialise.
For Nubank, acquiring Monzo would provide a ready-made UK banking licence and instant access to 16 million retail and business customers across Britain.
A takeover would also position Nubank as a direct competitor to Revolut on European soil. Revolut has spent the past year pushing aggressively into Latin and North America, encroaching on Nubank’s home territory.
Meanwhile, Monzo confirmed earlier this year that it had abandoned its US expansion plans, pivoting instead towards Europe with Spain and Ireland as initial targets.
Monzo declined to offer any comment on the reported talks.
A Nubank spokesperson stated: “Nubank does not comment on rumours or speculation. We reaffirm our commitment to maintaining open, clear, and timely communication regarding all significant business matters.”
As recently as May 2025, Monzo was understood to be assembling a banking syndicate for a prospective £6bn flotation in London.
The loss of Monzo from the IPO pipeline would be a particular disappointment for policymakers who had viewed Britain’s thriving fintech sector as a catalyst for reviving the capital’s depleted equity markets.
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