Third Point Ventures Leads $900M Round for N26
Tech Crunch October 18, 2021See full article
TechCrunch reports on the Series E round of funding for the Berlin-based startup, now valued at $9 billion.
Third Point Ventures co-led N26’s Series E round of funding with Dragoneer Investment group. In addition to raising $900 million, the startup was valued at $9 billion, a large increase from the $3.5 billion valuation at the time of their Series D financing.
The Berlin-based Fintech company, which operates a digital bank, serves 7 million clients in 25 countries. N26’s accounts and debit cards can all be controlled through their mobile app. N26 also offers a number of subscriptions, which give clients the ability to create sub-accounts, get higher limits, and receive insurance products as well. They’ll be using the funding to immediately ramp up their employee base.
“It gives us a lot of time over the next three to four years to line up for an IPO,” N26 co-founder and CEO Valentin Stalf told TechCrunch.
The round of financing comes in the wake of a shift in N26’s focus, returning to its core European market and products (including revenue from card transactions, subscriptions, and banking products) after some impressive growth across multiple markets.
After the affect of the pandemic, optimization for profitability and long-term financial sustainability became priorities, prompting the return to European markets, where there’s still a lot of room for growth. “If you look at the penetration that we have—in Paris, we have 5 to 7% of the population. In Berlin, it’s 5 to 7% of the population as well,” Stalf said. “The market is still huge so it makes a lot of sense to deepen our investments in those markets.”
N26 plans to be a market leader, growing their share of the central European market then moving into the Eastern European market as well.
With this round of funding N26 will also be able to embark on long-term projects, involving investment and trading. The company is on track to process $90 billion in transactions this year. This influx of money will simply allow them to increase that metric.