Mobile banking and the larger fintech space has seen some massive successes this year, with popular challenger banks like Chime and and Current pulling in one big funding round after another — and hitting even bigger valuations along the way.
The latest to do so is digital bank N26, which recently announced that it raised $900 million in Series E funding, bringing its valuation to a whopping $9 billion. That’s more than triple what it was in 2019, reportedly making it among the top 20 fintech companies in the world and the highest valued fintech company in its home country of Germany.
The fresh capital came from leading investors Third Point Ventures and Coatue Management, and will be used to expand N26’s mobile banking app and grow its global team. Over the next few years, the company says it plans to hire 1,000 new people, with a particular focus areas like product, technology and cybersecurity.
Founded in 2013, N26 is one of the many fintech startups working to be a market leader. It offers what one would normally expect from a challenger bank — debit cards controlled from a mobile app, the ability to send and receive money digitally, and several other financial products through premium subscriptions. The platform also provides access to various first-party or third-party products like phone insurance, credit products and overdraft capabilities.
Now, with a headquarters in Berlin and an office here in NYC, N26 has more than 7 million customers across Europe and the U.S., and says it is on track to process $90 billion in transactions this year. The company is also currently hiring for about 14 open remote-friendly tech positions based in the U.S., according to its website.
“This recent financing round solidifies the fact that retail banking as we know it has changed,” co-founder and co-CEO Valentin Stalf said in a statement. “With our fresh capital, we are in pole position to become one of the biggest retail banks in Europe, all without a single branch.”
Stalf’s co-founder and co-CEO Maximilian Tayenthal also recently told CNBC that this latest investment gives the startup the “financial leeway” to prepare for an initial public offering in the next 12 to 18 months. However, he added that a public debut is not necessarily a requirement for success. After all, Stripe raised $600 million at a $95 billion valuation earlier this year, making it one of the most valuable privately held startups in the U.S.
Either way, Heath Terry, a partner at Third Point Ventures seems confident that N26 is poised for success.
“N26 has established itself as a leading tech-forward global fintech organization,” he said in a statement. “We are excited to provide capital and strategic support to accelerate N26’s work to deliver their world-class mobile banking experience to millions.”
