Monzo could soon fall into foreign hands as it reportedly considers selling to a Brazilian rival, turning its back on a potential London listing. 

The digital bank is reportedly in talks over a sale to Brazilian digital bank Nubank, which would deal a fresh blow to the London Stock Exchange as it reels from foreign takeovers and a dearth of fresh listings.

The New York-listed Nu Holdings, the parent company of the bank, could buy Monzo for as much as £10billion, according to Sky News.

The digital bank is also reportedly in discussions with buyout firms including US investor Advent International, which is interested in acquiring a minority stake.

Bankers told Sky that a deal with private equity was only on the cards if talks with Nu Holdings stalled.

Monzo is considered one of Britain's rare technology success stories. Founded in 2015, it has grown to become one of the country's biggest consumer banks with 16million customers.

Revenue at the bank soared 39 per cent to £1.7billion last year, while adjusted pre-tax profits increased 20 per cent to £172.6million.

Diana Layfield, a former Google executive, replaced TS Anil as chief executive last year after boardroom disagreements over an anticipated initial public offering (IPO).

Even then, analysts said Monzo's exit from the US and its EU banking licence this year signalled a deliberate simplification ahead of a float.

But a potential sale to Nubank, which has more than 140 million customers, would see Monzo eschew London, where it had expected to list at a valuation of between £6billion and £7billion.

Monzo was last valued at £4.5billion in an employee share sale in October 2024, to investors including Singapore's wealth fund GIC and Stepstone Group.

It could mark another high-profile casualty for London as foreign firms snap up undervalued British names. 

This year, a string of London-listed firms has fallen victim to foreign predators, including City behemoth Schroders and Lloyd's of London insurer Beazley.

Others targeted include warehouse giant Segro, budget airline easyJet, ingredients maker Tate and Lyle and Evoke – the owner of bookmaker William Hill.