London-based digital bank Monzo is considering a funding round that would value it at 7.5 billion pounds (about $10.1 billion) after failing to secure a takeover by Nubank or a stake sale to private equity, The Financial Times reported Thursday (Nov. 5), citing unnamed sources.
Monzo’s talks with Nubank about a takeover at a valuation of 10 billion pounds (about $13.5 billion) broke down, and the company’s talks with private equity groups about a minority stake sale at a valuation of 8 billion pounds (about $10.8 billion) have stalled, according to the report.
Now, Monzo is getting ready to talk with venture capital investors about a funding round, per the report.
Monzo did not immediately reply to PYMNTS’ request for comment.
Monzo was most recently valued at 4.5 billion pounds (about $6.1 billion) in an employee share sale in 2024, the report said.
It was reported Sept. 26 that Nubank was weighing a bid for Monzo that would value the firm at up to 10 billion pounds. The report said that at the same time, Monzo was also in talks with private equity companies about selling as much as a 15% stake in the business to generate cash to fuel its growth. The report said a third option would involve Monzo embarking on a “venture capital-style” funding round in which investors would take smaller stakes in the company.
On Sept. 30, Nubank’s parent company, Nu Holdings, commented on news reports that it was interested in acquiring Monzo. Nu Holdings said in a regulatory filing that “while we have a great deal of respect for Monzo, the company is not pursuing a transaction with Monzo.”
It was reported in March that Monzo decided to withdraw from the U.S. market, where it had maintained a limited presence for several years, and concentrate on markets where it already had scale and regulatory footing.
It was reported in August that Monzo’s chairman, Gary Hoffman, who joined the company in 2019, was departing the company after shareholders lobbied for his removal. Hoffman’s departure came months after investors called for his ouster after the board removed TS Anil as CEO.