London-based fintech Monzo is divided over where to pursue its long-awaited market listing, with the digital bank's chief executive pushing to consider a U.S. initial public offering and the board favoring the UK market.
According to people familiar with the matter, the banking app is backed by Alphabet's investment fund CapitalG and China's Tencent. It was valued at US$5 billion last year and is currently in preliminary discussions with bankers in an effort to be "IPO ready" by the end of this year. ". and its plans.
People familiar with the matter said that CEO TS Anil is currently favoring a listing in the United States, while the company's board of directors prefers a listing in the domestic market with more than 10 million customers. People familiar with the matter added that discussions are at an early stage and no decisions have been made.
Monzo has not set a timetable for its IPO and hopes to be ready to go public when market conditions allow, people familiar with the matter said. Monzo, which was founded in London a decade ago, is more likely to list in 2026, but the focus this year is on getting governance and paperwork in place, a person close to the company said. Monzo declined to comment.
A disagreement among Monzo executives over where to list could be a potential blow to the London Stock Exchange and those trying to revive the UK stock market's fortunes. Money raised by London-listed companies hit a record low last year amid concerns about liquidity and valuations in the UK market, Dealogic data showed.
The fintech sector has emerged as one of the areas likely to boost fortunes in the London market, with neobanks Monzo, Revolut and Starling expected to list in the coming years. Although Revolut, Europe's most valuable start-up, has yet to formally decide where to list, its CEO Nik Storonsky expressed a preference for the United States last year.
Monzo CEO Anil joined the group in 2020 as its US CEO before taking over the top job from founder Tom Blomfield, who departed the same year.
The former Visa executive has been active in pushing for reforms to make London's capital markets more attractive through his participation 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 raised ambitions to re-enter the US - this time through a banking partnership that would allow it to bypass the license application. The company's last funding round, led by CapitalG, was $430 million in 2024 to fund its U.S. expansion plans.
The bank, known for its bright pink credit cards, in recent months appointed Tom Oldham, who helped oversee the U.S. listing of Brazilian digital bank Nubank, as chief financial officer.
Monzo reported its first annual profit last year as rising interest rates and growth in transaction and subscription fees boosted its earnings. The company will also open an office in Dublin as part of plans to enter the Irish market, which it sees as a possible gateway for future expansion in Europe.