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London-based fintech Monzo is at loggerheads over where to pursue a long-awaited market listing, with the digital bank's CEO pushing to consider a US IPO while the board favors the UK market.
The banking app, backed by Alphabet CapitalG and China's Tencent's investment fund and valued at $5 billion last year, is in preliminary discussions with bankers as it seeks an “initial public offering” by the end of this year, according to people familiar with the matter. With her plan.
CEO TS Anil currently favors a US listing, while the company's board was more inclined to float in its home market, where it has more than 10 million customers, the sources said. The sources added that the discussions were in their early stages, and no decision had been taken yet.
The sources said that Monzo has not settled on a time frame for the IPO and wants to be ready when market conditions allow it to go public. Monzo – which was founded in London a decade ago – will likely go public in 2026, but is focused on getting its governance and paperwork in place this year, a person close to the company said. Monzo declined to comment.
A difference of opinion among Monzo's top brass over where to list could deal a potential blow to the London Stock Exchange and those trying to revive the fortunes of UK stock markets. Floating companies in London raised the least amount of money ever last year, according to data from Dealogic, amid concerns about liquidity and valuations in the UK market.
The fintech sector has emerged as one area that could boost the fortunes of the London market, with neobanks Monzo, Revolut and Starling expected to list in the coming years. while Europe's most valuable startup Revolut has not formally settled on a listing location, and its CEO, Nick Storonsky, last year expressed a preference for the United States.
Monzo CEO Anil joined the group as its US president in 2020 before taking up the top job, replacing founder Tom Bloomfield after he left the role in the same year.
The former Visa executive has been active in pushing for reforms to boost the attractiveness of London's capital markets through his involvement in the “Unicorn Council”, a coalition of fintech leaders seeking to shape policy.
Monzo withdrew its application for a US banking license in 2021, but Anil has since set out ambitions to return to the country – this time via a banking partnership that would allow him to bypass the license application. Company The latest financing round amounted to $430 million In 2024, led by CapitalG, it was intended to fund US expansion plans.
The bank, known for its bright pink cards, in recent months appointed Tom Oldham, who helped oversee the U.S. listing of Brazilian digital lender Nubank, as chief financial officer.
Monzo reported this First annual profit last year Rising interest rates and growth in transaction and subscription fees boosted its profits. It is also opening an office in Dublin as part of its plans to enter the Irish market, which it sees as a potential gateway to future expansion into Europe.
