Fintech looks to the US as a board debate on where Monzo floats

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London-based fintech Monzo is confused about where its long-awaited market listing will go, with the digital bank’s chief executive saying the board favors the UK market, considering a US initial public offering.

The banking app, which is backed by Alphabet’s investment fund CapitalG and China’s Tencent and was valued at $5 billion last year, is in preliminary discussions with banks as it seeks to be “IPO ready” by the end of this year, people familiar with the matter said. With the plan.

CEO TS Anil currently prefers a listing in the US, the people said, adding that the company’s board was more interested in floating in the domestic market, which has more than 10 million customers. The discussions were at an early stage, the people added, and no decision had been taken.

Monzo has not set a timeline for the IPO and wants to be ready when market conditions allow it to go public, the people said. Monzo – which was founded in London a decade ago – was most likely to float in 2026, a person close to the company said, but this year it is focused on preparing its administration and paperwork. Monzo declined to comment.

Disagreements at Monso’s top levels over where to list could have serious consequences for those trying to revive the prospects of the London Stock Exchange and UK equity markets. Companies floated in London raised the least amount of money on record last year, according to Dealogic data, amid fears of inflation and speculation in the UK market.

The fintech sector is expected to be a sector that could boost the fortunes of the London market with new banks Monzo, Revolt and Starling listed in the coming years. While Europe’s most valuable startup Revolut has not been officially placed in a detailed position, CEO Nik Storonsky explained last year in the US election.

Monzo CEO Anil joined the group as US boss in 2020 before stepping up to the top role, after founder Tom Blomfield left the role that same year.

The former Visa executive has been active in pushing for reforms to boost the appeal of London’s capital markets and is part of the “Unicorn Council”, a coalition of fintech leaders seeking to shape policy.

Monzo has withdrawn its application for a US banking license in 2021, but Anil has expressed his desire to re-enter the country – this time through a banking partnership that could go through a license application. of the company The last $430mn financing round In the year It was intended to fund its US expansion plans led by Capital G in 2024.

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

Monzo reported Last year’s first annual profit Higher interest rates, and growth in transaction and subscription fees will boost earnings. It is opening an office in Dublin as part of plans to enter the Irish market, which it sees as a gateway to future expansion into Europe.