Monzo Bank is preparing a new private share sale as the UK digital lender looks to strengthen its capital base and extend its growth runway ahead of a potential IPO, according to Bloomberg.

The London-based fintech has hired Morgan Stanley to advise on the process and assess investor demand. The discussions are still preliminary, and Monzo has yet to determine the deal’s size or valuation.

The move comes just months after Monzo completed a $620m funding round backed by CapitalG, Alphabet’s independent growth arm, and venture capital firm Hedosophia. The company subsequently conducted a secondary share sale for employees, which valued the group at $5.9bn.

The new round would allow Monzo to maintain private ownership longer, following a trend among leading fintechs seeking to consolidate valuations before public listings. Rival digital bank Revolut recently secured $3bn in new funding, lifting its valuation to $75bn.

Founded a decade ago, Monzo has grown into one of Britain’s most prominent challenger banks, serving more than 13 million customers through its app-based platform. The company reported a pretax profit of £60.4m ($80.6m) for the year through March, up from £15.4m in the previous period.

Morgan Stanley and Monzo declined to comment on the potential transaction.

The planned share sale underscores continuing investor appetite for profitable fintechs in the UK, where digital banks are increasingly attracting global private equity and growth capital as they mature toward public markets.

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