Nubank's acquisition of Monzo is valued at up to approximately $13 billion.

According to Sky News, Brazilian digital bank Nubank has entered early merger talks with UK digital bank Monzo, with a valuation range of approximately £8 billion to £10 billion, equivalent to about $10.6 billion to $13.25 billion.

Monzo's board is also evaluating another path: a new round of financing with a valuation exceeding £8 billion, with funds aimed at expanding into continental Europe. The company declined to comment on the report, and Nubank did not respond immediately outside of business hours. Nu Holdings is listed in New York with a market capitalization of approximately $65.5 billion.

As of March 31, Monzo reported a pre-tax profit of £87.3 million and revenue of £1.7 billion; last October, the employee stock sale was valued at £4.5 billion, with buyers including Singapore's sovereign fund GIC and StepStone. Monzo has deposits of approximately £25.7 billion, around 15.2 million customers, and holds banking licenses in the UK and EU; it has loans of about £2.3 billion, with a loan-to-deposit ratio of less than 10%.

Nubank has a credit portfolio of approximately $39.4 billion, deposits of about $45.3 billion, lending out about 87 cents for every $1 in deposits, with a net interest margin of approximately 22.9% in its main market. The company received conditional approval for a U.S. banking license in January and has launched savings and credit card products in the U.S. Revolut has about 70 million customers, with a reported valuation of about $115 billion, and obtained a full banking license in the UK in March this year.

Monzo's former CEO TS Anil left after a board dispute, and former Google executive Diana Layfield took over in February. The company has struggled to establish itself in the U.S. market since entering in 2019.

Market dynamics indicate that the buyer aims to integrate a high-turnover credit model into the low loan-to-deposit ratio of the UK license and deposit pool; the seller is looking to maximize market value between independent financing for European expansion and a sale. The event is driven by early contact leaks and has not yet constituted an offer. The beneficiary is the credit factory that can turn £25.7 billion in deposits into interest-bearing assets, while the pressured party is Revolut, which has a valuation of $115 billion and considers Europe its main market, as well as whether the low-margin net interest can absorb Brazilian-style lending density.

Public reports emphasize that talks are still in the early stages, and the deal may not occur.

Source: Public information