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London-based fintech company Monzo is unsure where to pursue a long-awaited market listing, with the digital bank’s chief executive pushing to consider a US IPO while the board favors the UK market .
The banking app, backed by Alphabet’s investment fund CapitalG and China’s Tencent and valued at $5 billion last year, is holding preliminary discussions with bankers with a view to being “ready for an IPO » by the end of this year, according to close sources. with his plan.
Managing Director TS Anil is currently favoring a US listing, the sources said, while the company’s board is more inclined towards an IPO in its home market, where the company has more than 10 million customers. Discussions are in their early stages, the people added, and no decisions have been made.
Monzo has not set a timetable for its IPO and wants to prepare for when market conditions allow it to go public, the sources said. Monzo – founded in London a decade ago – was more likely to go public in 2026, a person close to the company said, but is focused on preparing its governance and paperwork this year. Monzo declined to comment.
The difference of opinion among Monzo executives over whether to list could potentially deal a major blow to the London Stock Exchange and those trying to revive the fortunes of Britain’s stock markets. Float companies in London raised the least money on record last year, according to Dealogic data, amid concerns about liquidity and valuations in the UK market.
The fintech sector has emerged as an area likely to boost the fortunes of the London market, with neobanks Monzo, Revolut and Starling all expected to list in the coming years. While The most valuable start-up in Europe Revolut has not yet officially chosen a listing location, with its chief executive Nik Storonsky expressing a preference for the United States last year.
Monzo chief executive Anil joined the group as US boss in 2020 before rising to the top job, replacing founder Tom Blomfield after he left the role that same year.
The former Visa executive has actively advocated for reforms to make London’s capital markets more attractive, through his involvement in the “unicorn council”, a coalition of fintech executives seeking to shape the policy.
Monzo withdrew its application for a US banking license in 2021, but Anil has since expressed his ambition to re-enter the country – this time through a banking partnership that would allow him to bypass a license application. The company latest funding round of $430 million in 2024, led by CapitalG, was intended to finance its expansion plans in the United States.
The bank, known for its hot pink cards, in recent months named Tom Oldham, who helped oversee the U.S. listing of Brazilian digital lender Nubank, as chief financial officer.
Monzo reported its first annual profit last year as rising interest rates and growth in transaction and subscription fees have boosted its profits. The group is also opening an office in Dublin as part of its plans to enter the Irish market, which it sees as a possible gateway for future expansion into Europe.