The British digital bank Monzo faces an important strategic decision: While CEO TS Anil prefers a listing in the USA, the supervisory board is pushing for an IPO in London. The company, valued at $5 billion in 2023 and supported by Alphabet's investment fund CapitalG as well as the Chinese technology company Tencent, is currently holding exploratory talks with banks to prepare for a possible IPO by the end of this year, according to people familiar with the matter.

According to company sources, Monzo has not yet set a specific timeline for the IPO. An initial public offering is expected no earlier than 2026, but the company is currently focusing on optimizing its governance structures and regulatory requirements. Monzo declined to comment on the plans.

The internal debate about the stock exchange location could further burden efforts to strengthen the London capital market. Last year, according to Dealogic, the London Stock Exchange recorded the lowest issuance proceeds in its history, which increasingly unsettles market participants. Particularly in the fintech sector, experts see opportunities for a revival, as several prominent players, including the digital banks Monzo, Revolut, and Starling, are preparing for their IPO in the coming years.

While Monzo's CEO Anil is betting on the more attractive capital market in the USA, the board of directors prefers a listing in London, where the company has over 10 million customers. Anil, a former Visa manager, took the helm at Monzo in 2020 and has since been instrumental in reform initiatives to strengthen the London Stock Exchange.

Monzo withdrew its application for a U.S. banking license in 2021 but still plans to enter the American market through a banking partnership, thus avoiding a renewed license application. The last funding round of 430 million USD in 2024, led by CapitalG, primarily served the expansion in the USA.

The fintech company has recently appointed Tom Oldham as the new Chief Financial Officer, who previously played a key role in the US IPO of the Brazilian digital bank Nubank. Monzo also plans to open an office in Dublin to tap into the Irish market and prepare for potential expansion into other European countries.

The company recorded its first annual profit last year, aided by higher interest earnings as well as increasing revenues from transaction and subscription fees.