Fast-growing UK digital bank Monzo is reportedly weighing up options to be acquired by Brazil’s Nubank, or to launch a major new funding round.

According to reporting over the weekend by Sky News and the Financial Times, the UK’s digital banking player Monzo has been approached by Brazil’s Nubank about an acquisition that would value it at between £8bn and £10bn.

Sky News reports that Monzo has been approached about a combination with Nu Holdings, which itself has a market capitalisation of around $65.5bn. While discussions are still at an early stage, Monzo has engaged investment bankers from Morgan Stanley and Qatalyst as advisers.

The UK digital bank, which launched in Ireland in April, is also weighing an alternative option, according to Sky News, which would see it launch a new fundraising round targeting a value of more than £8bn, in order to support further expansion in Europe.

The Financial Times reports that a third option is also on the table with Monzo in talks with several private equity firms about selling a large stake of up to 15pc in the business to secure cash for planned expansion.

In its latest annual report, Monzo claims more than 15m customers, with 10.4m active users – almost have of which use Monzo as their primary bank.

The news comes just days after it was announced that Monzo’s EU CEO Michael Carney is stepping down from his role to launch a new AI accessibility start-up.

In December 2025, Monzo became the first digital bank to secure a full European banking licence through the Central Bank of Ireland. It launched in Ireland this April with around 100,000 users on a waitlist to use its services.

Earlier this year, the UK fintech announced plans to double its workforce in the country – based out of Dublin – to 70 by mid-2027.

The company employs 5,275 according to its latest annual report. It also has offices in London, Cardiff and Barcelona.

In late March, the UK bank announced plans to shutter its US operations in order to focus on growth opportunities closer to home.

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