Key Takeaways
- • Monzo is exploring a fresh fundraising round that would value the London-based digital bank at roughly £7.5bn, according to the Financial Times, after private equity talks stalled.
- • Buyout firms Advent International, TPG and CVC had discussed taking a minority stake of up to 15 per cent at an £8bn valuation, but those talks have stalled, according to people familiar with the discussions.
- • Monzo is now preparing to tap venture capital investors for a more traditional funding round, a shift that follows the collapse of a £10bn takeover approach from Brazilian fintech Nubank over valuation.
- • Monzo reported £87.3mn in pre-tax profit for the fiscal year to March 2026, up from £60.5mn, with revenues rising 39 per cent to £1.7bn.
- • The company was last valued at £4.5bn in a 2024 employee share sale and is seeking cash to fund European expansion, including its recent Spain launch.
Summary
Monzo Bank is exploring a fresh fundraising round that would value the lender at roughly £7.5bn, according to the Financial Times, after failing to secure a £10bn takeover by Nubank and struggling to sell a minority stake to private equity. Talks with buyout firms Advent International, TPG and CVC over a stake of up to 15 per cent, at a valuation Monzo sought at £8bn, have stalled, according to people familiar with the discussions. Monzo had kept a private equity sale as a backup to the Nubank talks, which broke down over valuation. An acquisition would have given New York-listed Nubank, which has a $55bn market capitalisation, a UK foothold, but the Brazil-based group is now expected to focus on expanding into the US.
According to the FT's sources, Monzo is now preparing to approach venture capital investors for a more traditional funding round. One person familiar with the board's thinking said the group had earlier preferred a takeover or a private equity stake sale over a new round, since a private equity deal would have meant a considerably larger investment than a venture round. Monzo declined to comment, and the buyout firms did not immediately respond to requests for comment.
The discussions come as Monzo, which employs more than 5,000 people and has more than 16mn customers, almost all in the UK, works through governance changes. Last year, major investors including venture capital firms Accel and Iconiq pushed back after the surprise departure of chief executive TS Anil, leading to demands for the ouster of the chair and greater investor representation on the board. Anil was reinstated as a non-executive director. His successor, Diana Layfield, has closed Monzo's US operations and focused on growth in Europe, launching in Ireland and Spain.
Financially, Monzo reported £87.3mn in pre-tax profit for the fiscal year to March 2026, up from £60.5mn the prior year, with revenues up 39 per cent to £1.7bn. The bank still trails domestic rival Revolut, which has 80mn customers and operates in more than 40 countries. Layfield is seeking to diversify revenue through a larger lending book and new features, including mobile eSIM services. Founded by Tom Blomfield in 2015, Monzo was among a group of UK fintechs that aimed to draw younger customers away from traditional banks.
According to the FT's sources, Monzo is now preparing to approach venture capital investors for a more traditional funding round. One person familiar with the board's thinking said the group had earlier preferred a takeover or a private equity stake sale over a new round, since a private equity deal would have meant a considerably larger investment than a venture round. Monzo declined to comment, and the buyout firms did not immediately respond to requests for comment.
The discussions come as Monzo, which employs more than 5,000 people and has more than 16mn customers, almost all in the UK, works through governance changes. Last year, major investors including venture capital firms Accel and Iconiq pushed back after the surprise departure of chief executive TS Anil, leading to demands for the ouster of the chair and greater investor representation on the board. Anil was reinstated as a non-executive director. His successor, Diana Layfield, has closed Monzo's US operations and focused on growth in Europe, launching in Ireland and Spain.
Financially, Monzo reported £87.3mn in pre-tax profit for the fiscal year to March 2026, up from £60.5mn the prior year, with revenues up 39 per cent to £1.7bn. The bank still trails domestic rival Revolut, which has 80mn customers and operates in more than 40 countries. Layfield is seeking to diversify revenue through a larger lending book and new features, including mobile eSIM services. Founded by Tom Blomfield in 2015, Monzo was among a group of UK fintechs that aimed to draw younger customers away from traditional banks.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.