Fintech Monzo is looking at the US as a board discussion where they can float

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London-based fintech Monzo is reluctant to seek a long-awaited IPO, with the digital bank’s chief executive pushing to consider a US initial public offering if the board likes it UK market.

The banking tool, backed by the investment fund Alphabet CapitalG and China’s Tencent and was valued at $ 5bn last year, has held preliminary discussions with bankers as it seeks to “IPO ready” by the end of this year, according to people familiar with the matter. with its purpose.

Chief executive TS Anil currently favored a US listing, the people said, while the company’s board was keen to float in the domestic market, where it has more than 10mn customers. Discussions were in the early stages, the people added, and no decisions had been taken.

Monzo was not yet ready for its IPO and wants to be ready when market conditions allow it to go public, the people said. Monzo – founded in London a decade ago – could float in 2026, said one person close to the company, but is focusing on preparing its governance and filings this year. Monzo declined to comment.

The difference of opinion at Monzo’s top level about where to list could cause potential damage to the London Stock Exchange and those trying to revive the fortunes of UK markets. Companies floating in London raised the smallest amount on record last year, according to Dealogic data, amid concerns about the UK stock market’s slump and valuations.

The fintech sector has emerged as an area that could add to the London market’s fortunes with neobanks Monzo, Revolut and Starling all expected to list in the coming years. However The most important origin in Europe Revolut has not officially settled on the list, CEO Nik Storonsky last year indicated the US option.

Monzo managing director Anil joined the group as its Americas director in 2020 before taking the top position, replacing founder Tom Blomfield after he stepped down that same year.

The former Visa chief executive has been active in pushing for reforms to boost the appeal of London’s capital markets through his participation in the “unicorn council”, a gathering of fintech leaders looking to create strategies .

Monzo withdrew its application for a US banking license in 2021, but Anil has since expressed ambitions to re-enter the country – this time with a banking partnership that would allow it to skip the license application. Of the company last $430mn funding round in 2024, led by CapitalG, was intended to support its US expansion plans.

The bank, known for its bright pink credit cards, in recent months appointed Tom Oldham, who helped oversee the US listing of Brazilian digital lender Nubank, as chief financial officer.

Monzo reported it first year profit last year as profits are higher, and growth in sales rates and provisions has boosted its earnings. It is also opening an office in Dublin as part of plans to enter the Irish market, which it sees as a potential avenue for future expansion in Europe.