Fintech Investors Pump $100 Million into N26 to take Total Evaluation Past $3.5 Billion
Fintech startup N26 has scooped $100 million in its latest Series D funding, raking its total funding to $800 million. The company is now one of fintech’s most-prized technology providers, evaluated at above $3.5 billion.
N26’s funding will shatter all fears of the coronavirus-induced slowdown, especially in fintech and retail banking sectors. Investors have placed their faith in N26’s extensive fintech products and solutions, in addition to giving support to its long-list of partners and tech vendors, including Lime, TIDAL, Headspace, Booking.com, Yoox.com, Apple Pay, and others, who have been bit severely by the pandemic.
Founded in 2013, the European Union-based fintech unicorn has quickly earned its place as a leading provider of mobile banking solutions to customers in 25 regions. Formerly incubated as Paypayer, the company rebranded to N26 very soon.
In February 2020, N26 had decided to quit the UK market, but that hasn’t changed the company’s mission to “radically transform” the global banking industry, keeping its focus on the growing fintech markets, including in the US, which is N26’s biggest consumer base.
All of N26’s major investors participated in the extension of the funding round, reaffirming their long-term support of N26’s vision and ambition to transform retail banking globally.
With COVID-19 fears slowing down the pace of business and badly hitting the bottom-line, N26’s fresh spurt of financing will help to accelerate N26’s product development.
At the time of this announcement, Valentin Stalf, co-founder and CEO of N26 said,
“The adoption of digital banking is accelerating as the world adjusts to a new normal. As one of the world’s leading challenger banks, N26 is front and center in this shift. We are fully committed to spearheading digital innovation globally, creating world-class mobile banking solutions for all our customers around the world.”
The extension underscores the strong commitment from N26’s investor base to its long-term vision to build a mobile banking platform the world loves to use.
Financial services are undergoing a rapid transformation and the pandemic has left many glaring loops exposed. Cybercrimes such as ransomware and financial frauds are the biggest concerns in the retail banking industry. N26 will be expected to strengthen its digital security standards, safeguarding the interest and data of over 5 million users, including the 250k users in the U.S.
N26’s US CEO Nicolas Kopp affirmed the company’s stance toward the country, Nicolas said, “In the last month, we’ve seen many people moving away from cash towards contactless payments and e-commerce. We are also encouraged to see that many of our U.S. users are putting their salaries into their N26 accounts, signaling that N26 is serving as a primary banking solution for them.”
Customers are thoroughly enjoying Apple Pay features as well as the cashback offers and exclusive discounts with music, fitness, meditation, and lifestyle brands offered as part of the N26 perks program.
In the coming months, N26 will continue to invest in growing its presence across Europe and the US. In the US, the company launched last August and announced in February that it had acquired 250 thousand customers in a short 5 months.
Top N26 competitors in the Digital Banking/ Fintech Market
- Chase Mobile
- Starling Bank
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