N26 achieves larger financing round than expected

Berlin (dpa) – The Berlin smartphone bank N 26 has collected over 900 million dollars from investors and is with this financing round to most valuable FinTech in Germany.

The valuation of the start-up is now over nine billion dollars, the company announced on Monday in Berlin. These numbers are around ten percent above the values ​​that were reported in advance by several media a week ago. After the fifth round of financing, N 26 is now the second most valuable German start-up behind front-runner Celonis, which is valued by investors at over ten billion dollars.

Company co-founder Valentin Stalf told the German Press Agency that the financing round meant “for N 26 a very big milestone that shows how important digital banking has become”. “With the investors that we got on board, we are also taking a very important step towards going public in the coming years.”

Restriction by Bafin

N 26 has to live with a restriction in the context of the new financing round, however, also for a limited period of time. Stalf announced that the banking supervisory authority Bafin would issue an order in the near future, whereby the growth of N 26 over the next few months in Europe to «maximum 50 000 to 70 000 new customers per month »

N 26 does not communicate current customer numbers. However, industry observers assume that N 26 has increased by around 100 000 Has gained new customers every month. At the end of September it became known that the smartphone bank had paid the Bafin a fine of 4, 25 million euros because reports of suspected money laundering had been submitted late to the banking supervisory authority.

Continue growth

Stalf told the dpa that it was showing that the Bafin had a certain trust in N 26 as a of the fastest growing banks in Europe. “With this decision we can continue our growth path.” N 26 will continue to strengthen the processes in the coming months. “Against this background, the slowed growth, which we agreed on after talks with the German regulator, is okay with us.” were involved, among others, the insurance group Allianz, the sovereign wealth fund GIC from Singapore, the Chinese internet giant Tencent, Earlybird and the US investor Peter Thiel. The current financing round is led by the investors Third Point Ventures and Coatue Management, based in New York. In addition, the Dragoneer Investment Group and existing investors are participating.

Further expansions planned

N wants to use the money 26 continue to expand and focus on continental Europe. For example, customers in Poland and Romania are to be won. A smaller test run is also planned in Brazil. N 26 will use the funds to further expand the range of digital banking apps and enlarge the global teams. In the coming years, more 1000 employees will be hired worldwide, especially in the areas of technology, product management and digital security. N 26 currently has around 1500 employees.

With this financing round, N 26 also its offer of share options for employees. While so far only managers have been involved in the company, the so-called “Employee Stock Ownership Plan” will in future be extended to the entire workforce.

Related Articles

Back to top button