DE Shaw in Talks to Lead £300M+ Funding Round for UK Digital Bank Monzo at ~£7B Pre-Money Valuation
Per Sky News, DE Shaw is negotiating to lead a minimum £300M round for Monzo at a ~£7B pre-money valuation, up 56% from its 2024 mark.
US hedge fund DE Shaw & Co. is in talks to lead a funding round for UK digital bank Monzo of at least £300 million, with sources suggesting the total could reach £500 million, according to Sky News. The deal points to a pre-money valuation of approximately £7 billion.
This development follows the collapse of acquisition discussions between Monzo and Brazilian fintech Nubank. In October 2024, Monzo was valued at £4.5 billion in an employee share sale. Tech Funding News calculates that adding £300-500 million would result in a post-money valuation of roughly £7.3-7.5 billion, representing a 56% increase from the 2024 level.
Financial data shows that for the fiscal year ended March 31, 2026, Monzo reported revenue of £1.7 billion and adjusted pre-tax profit of £172.6 million. At a £7 billion pre-money valuation, this implies a price-to-sales ratio of about 4.1x and a price-to-earnings multiple of approximately 41x on adjusted profits.
DE Shaw manages $125 billion in assets and is also an investor in AI company Anthropic. Reports note DE Shaw's history of backing companies with imminent listing plans, which may make a Monzo IPO more plausible. Other investors are also in talks with the bank, and terms remain unfinalized.