N26 Online Bank Added $170M in Valuation
N26, a German online bank, raised as much as $170 million from its existing investors for its additional funding. And the six-year-old fintech start-up is valuing at $3.5 billion.
Moreover, the German bank was based in Berlin, and it has made its way to Europe with its app-based checking account and debit card. As of now, the company does not run any brick-and-mortar branches. However, across 24 countries in the continent, it managed to attract more than 3.5 million customers.
In January, the firm announced its $300-million fundraising, which has not been spent. And its latest capital injection in it is a top-up, valuing at $2.7 billion. Aside from that, the money would surely be for boosting its marketing drive in the U.S., where N26 just launched. Also, for pushing its expansion in Europe and invest in other businesses.
The current investors of N26, including Singaporean sovereign wealth fund GIC, Chinese tech giant Tencent, and Peter Thiel’s Valar Ventures, supported the recent round. As a result, the market worth of Europe’s most valuable fintech surged by $800 million in just six months.
Then, an entrepreneur thinks that the firm’s worth now compared last January is higher due to its continuous developments in its key markets.
N26 CEO Valentin Stalf believes that investors worldwide see the disappointment customers face in retail banks.
“At the same time, they see it’s a huge market,” he stated.
In addition to that, Stalf said the massive valuation is modest and indeed low for a company like this. And hoping for the firm to have an opportunity to worth higher than it is now. To compare, Monzo, a British rival, recently valued at $2.5 billion by investors in its previous round of funding.
In October, the German bank launched in the U.K. And now, it gained above 200,000 customers, while further increasing for about 1,000 clients a day.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.