Key Takeaways
- • The Financial Times reports Monzo is planning a £7.5 billion funding round after its £10 billion takeover bid from Nubank and buyout talks with private equity firms collapsed.
- • Nubank walked away on 30 September after a disagreement over value; the Sky News-reported deal had been pegged at £8-10 billion in cash and shares.
- • Advent, TPG and CVC had been evaluating stakes of up to 15% at an £8 billion valuation before those talks were called off.
- • At £7.5 billion, Monzo would trade at roughly 86x statutory pre-tax profit of £87.3 million and about 43x adjusted profit, per the publication's calculations.
- • The valuation is roughly 67% above the £4.5 billion employee share sale value from October 2024 but well below Revolut's $115 billion benchmark.
Summary
Monzo is seeking a £7.5 billion funding round after takeover and private equity discussions failed, according to the Financial Times. The UK digital bank, which has more than 16 million customers, had been the subject of early takeover talks with Nubank. Sky News reported on 26 September that Nubank was considering an acquisition valued at £8-10 billion in cash and shares, and Nubank said on 30 September that it would not proceed. The FT reported the collapse stemmed from a disagreement over value.
Following the Nubank setback, Monzo approached buyout firms Advent, TPG and CVC, which were examining stakes of up to 15% at a target valuation of £8 billion. According to the FT, the board had preferred a buyout or PE transaction because it would have raised the most capital. A London listing led by Morgan Stanley had earlier been the plan. The publication notes that a minority funding round and a full takeover are not directly comparable, since the former values only part of the company.
According to Bloomberg, Monzo reported £1.7 billion in revenue for the year ended March 2026, up 39%, and statutory pre-tax profit of £87.3 million, up from £60.5 million. At £7.5 billion, the valuation implies about 86x statutory profit and 43x adjusted profit, according to the publication's calculations. The company compares itself with Revolut, which sold shares at a $115 billion valuation, or about 50x its 2025 pre-tax profit of $2.3 billion. At current exchange rates, £7.5 billion is roughly $10 billion, less than a tenth of Revolut's valuation.
Monzo is seeking capital to fund European expansion. It opened in Ireland in April, closed its US business the same month, and launched in Spain in October. The company employs more than 5,000 staff. Accel, Iconiq, CapitalG and GIC in Singapore must now decide whether to invest at a valuation that buyout firms effectively rejected, and if they do, the £7.5 billion figure would become a benchmark for UK neobank fundraising.
Following the Nubank setback, Monzo approached buyout firms Advent, TPG and CVC, which were examining stakes of up to 15% at a target valuation of £8 billion. According to the FT, the board had preferred a buyout or PE transaction because it would have raised the most capital. A London listing led by Morgan Stanley had earlier been the plan. The publication notes that a minority funding round and a full takeover are not directly comparable, since the former values only part of the company.
According to Bloomberg, Monzo reported £1.7 billion in revenue for the year ended March 2026, up 39%, and statutory pre-tax profit of £87.3 million, up from £60.5 million. At £7.5 billion, the valuation implies about 86x statutory profit and 43x adjusted profit, according to the publication's calculations. The company compares itself with Revolut, which sold shares at a $115 billion valuation, or about 50x its 2025 pre-tax profit of $2.3 billion. At current exchange rates, £7.5 billion is roughly $10 billion, less than a tenth of Revolut's valuation.
Monzo is seeking capital to fund European expansion. It opened in Ireland in April, closed its US business the same month, and launched in Spain in October. The company employs more than 5,000 staff. Accel, Iconiq, CapitalG and GIC in Singapore must now decide whether to invest at a valuation that buyout firms effectively rejected, and if they do, the £7.5 billion figure would become a benchmark for UK neobank fundraising.
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