Monzo, the British fintech company, is reportedly in early discussions regarding a potential takeover by Nu Holdings, the New York-listed owner of Nubank. The mooted deal could value Monzo at £8bn to £10bn, according to Sky News City editor Mark Kleinman.
Morgan Stanley and Qatayst have been engaged to advise Monzo. However, a concrete deal is considered to be months away and could still fall apart. Monzo's shareholders are reportedly considering a sale due to the curtailment of its US operations and a focus on European expansion, including a live Irish operation and planned expansion into Spain.
Regulators in the UK, including the Prudential Regulation Authority and Financial Conduct Authority, would likely demand greater oversight of Monzo's UK operations if a sale to a Brazilian-based parent company were to occur. A redomiciling of Monzo has been suggested as a way to achieve this.
Should a sale not materialise, Monzo's board and shareholders are also exploring other options, including a conventional funding round to support international expansion or a stake sale to a private equity investor such as Advent International.