Key Takeaways
- • D.E. Shaw is in talks to lead a funding round of at least £300m for Monzo, with the final size potentially between £300m and £500m, according to Sky News.
- • The round would value the UK digital bank at about £7bn, a step up from the £4.5bn secondary sale valuation in October 2024.
- • The talks follow the collapse of takeover discussions with Brazil's Nu Holdings, which had contemplated a valuation of £8bn–£10bn, and stalled private equity minority-stake talks with Advent International, TPG and CVC.
- • Monzo reported revenue of £1.7bn (up 39%) and adjusted profit before tax of £172.6m (up 20%) for the year to March 2026, with deposits of £25.7bn.
- • Terms are not fixed, other investors are also in discussions, and neither Monzo nor D.E. Shaw has commented.
Summary
D.E. Shaw is in talks to lead a funding round for Monzo that would value the British digital bank at about £7bn, Sky News reported. The US quantitative hedge fund has indicated interest in leading a raise of at least £300m, with the final size potentially landing between £300m and £500m. Sources said the valuation is likely to settle around £7bn, though terms are not fixed and other investors are also in discussions with the company. Monzo and D.E. Shaw declined to comment.
The talks follow the collapse of takeover discussions with Brazil's Nu Holdings, which had contemplated a valuation of £8bn–£10bn. Separate talks with private equity firms over a minority stake, including Advent International, TPG and CVC, also stalled. The Financial Times reported last week that Monzo then shifted toward a more conventional venture-style round. Monzo was last valued at £4.5bn in a secondary share sale in October 2024, so a deal near £7bn would be a clear step-up while remaining below the levels discussed in the earlier Nubank and private equity processes.
Monzo continues to scale, with roughly 15–16 million customers. For the year to March 2026 it reported revenue of £1.7bn, up 39%, and adjusted profit before tax of £172.6m, up 20%, with deposits of £25.7bn. New CEO Diana Layfield has been steering product expansion and limited European growth after the firm shut its US operations earlier this year.
D.E. Shaw manages roughly $125bn and has a record of backing technology companies with public-market ambitions, including a position in Anthropic. An investment would place it alongside existing Monzo shareholders, which include a Google affiliate and Singapore's GIC. UK ministers and the London Stock Exchange have encouraged a flotation, and a US listing remains possible given the investor base. The talks are at an early stage and no agreement has been reached. If completed, the round would fund continued growth and European expansion, and would add another high-growth technology name to D.E. Shaw's portfolio, which is already tilted toward disruptors.
The talks follow the collapse of takeover discussions with Brazil's Nu Holdings, which had contemplated a valuation of £8bn–£10bn. Separate talks with private equity firms over a minority stake, including Advent International, TPG and CVC, also stalled. The Financial Times reported last week that Monzo then shifted toward a more conventional venture-style round. Monzo was last valued at £4.5bn in a secondary share sale in October 2024, so a deal near £7bn would be a clear step-up while remaining below the levels discussed in the earlier Nubank and private equity processes.
Monzo continues to scale, with roughly 15–16 million customers. For the year to March 2026 it reported revenue of £1.7bn, up 39%, and adjusted profit before tax of £172.6m, up 20%, with deposits of £25.7bn. New CEO Diana Layfield has been steering product expansion and limited European growth after the firm shut its US operations earlier this year.
D.E. Shaw manages roughly $125bn and has a record of backing technology companies with public-market ambitions, including a position in Anthropic. An investment would place it alongside existing Monzo shareholders, which include a Google affiliate and Singapore's GIC. UK ministers and the London Stock Exchange have encouraged a flotation, and a US listing remains possible given the investor base. The talks are at an early stage and no agreement has been reached. If completed, the round would fund continued growth and European expansion, and would add another high-growth technology name to D.E. Shaw's portfolio, which is already tilted toward disruptors.
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