Berlin-based fintech startup N26 has attracted a $300 million investment elevating its valuation to $2.7 billion. The startup will utilise the funding to break into the US market.
Largest fintech investment in Europe
The series D funding round of N26 is led by Insight Venture Partners, with participation from Singapore’s sovereign wealth fund GIC and existing investors. Post the funding; N26 has become the second most valuable digital bank start-up in the world just after Brazil’s Nubank.
Harley Miller, principal at Insight Venture Partners expressed, “N26 is the clear market leader in the European mobile banking industry, and the company is ideally positioned to expand to the US market this year, and build a formidable global digital consumer brand.”
Prior to the latest funding, the startup had obtained around $215 million, including the $160 million series C inculcation in the year 2018 itself. The major investors in the earlier rounds include Chinese internet giant Tencent Holdings, Allianz X, Li Ka-Shing’s Horizons Ventures, Peter Thiel’s Valar Ventures and Earlybird Venture Capital.
N26 – offers enhanced banking experience compared to traditional banks
N26 offers current accounts and facilitates the customers with Debit MasterCard and Maestro card for seamless banking. Besides, overdraft, premium current accounts are also offered to the customers. One can manage the accounts through any device of his choice. Interestingly, the account opening can be initiated via a video chat with N26’s identity verification partner, IDnow.
Operational in 24 European markets with 2.3 million customers
N26 was founded in 2013 by Valentin Stalf and Maximilian Tayenthal. With employee strength of 700, the startup maintains offices in Berlin, Barcelona and New York. It generates revenue from card transactions, interchange fee and subscription model. Further, a significant share comes from premium accounts, consumer credits and other financial products. Notably, customers hold a total sum of €1 billion in N26 accounts. The digital bank has carried transaction volume of €20 billion since its instigation.
Next destination – the U.S.
N26 is focusing on expanding in the U.S. fintech market in 2019. Further, it aspires to penetrate the other European and Asian financial space in the coming years aiming a customer base of 100 million across the globe.
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