Nu Holdings (NYSE: NU) has reportedly held talks to acquire Monzo in a potential deal that could value the British digital bank at £8 billion to £10 billion.
Monzo has hired Morgan Stanley and Qatalyst to advise it as it considers strategic options, including a full sale, a new funding round or a potential minority stake sale to private equity firms.
A sale to Nu would combine Monzo with a rapidly scaling digital lender in South America. Nu operates in Brazil, Colombia and Mexico, and boasts 140 million customers.
The talks are at a relatively early stage. Monzo’s board is also weighing a new funding round at a valuation above £8 billion for European expansion.
Monzo was valued at £4.5 billion in an October 2024 employee share sale.