Monzo is weighing a new funding round that would value the UK digital bank at around £7.5 billion, the Financial Times reported.

A takeover by Brazil’s Nubank did not go ahead, and talks to sell a minority stake to private equity firms have stalled.

Advent International, TPG and CVC were among the firms in those talks, which covered a stake of up to 15 per cent.

People familiar with the matter said Monzo had aimed for a valuation of £8 billion.

The bank now plans to raise funds from venture capital investors instead. One person said the board had preferred a takeover or a private equity deal.

A private equity deal would have brought a much larger investment than a venture capital round, the person added.

Monzo turned to private equity after its talks over a £10 billion takeover by Nubank ended without agreement on valuation. Nubank is now likely to focus on growth in the US.

The bank wants the funds to support its expansion in Europe. It already operates in Ireland and launched in Spain in October.

In 2024, an employee share sale valued the bank at £4.5 billion. For the year to March 2026, pre-tax profit rose to £87.3 million from £60.5 million. Revenue grew 39 per cent to £1.7 billion.

Almost all of its more than 16 million customers are in the UK. Under chief executive Diana Layfield, the bank has closed its US operations and is building up its lending portfolio.

Monzo declined to comment. The three private equity firms did not immediately respond to requests for comment.

Featured image: Edited by Fintech News Switzerland, based on image by Monzo via its website and Magnific.