N26: Series D financing round of 260 million euros
Berlin — Mobile bank N26 announced that it has raised $300 million in its Series D funding round led by New York-based venture capital firm Insight Venture Partners. This brings N26’s valuation to $2.7 billion. GIC, an investment fund of the state of Singapore, is also participating in the round. According to N26, this brings its valuation to USD 2.7 billion. N26 originally emerged from the AS PnP Accelerator program.
The $300 million investment represents the largest private equity financing round for a fintech company in Europe in recent years. To date, N26 has raised more than $500 million from the world’s most established investors, including Tencent, Allianz X, Peter Thiel’s Valar Ventures, Li Ka-Shing’s Horizons Ventures, Earlybird Venture Capital, Redalpine Ventures, Axel Springer Plug and Play and Greyhound Capital.
N26’s goal is to become the first global mobile bank. The company currently operates in 24 markets across Europe and has tripled its customer base in the last 12 months to more than 2.3 million customers. N26 is using the investment for global expansion, starting with the launch of its app in the U.S. in the first half of 2019. In the coming years, the company aims to reach over 100 million customers worldwide.
Valentin Stalf, CEO and co-founder of N26 (photo), says: “Globally, too many people are still using bad digital banking products and paying too high fees. With Insight Venture Partners and GIC, we are joined by other renowned investors and now more than ever we have the chance to turn around one of the biggest industries with the best investors in the world.”
Harley Miller, Principal at Insight Venture Partners, said, “It’s increasingly rare these days to see an industry this large not yet revolutionized by technology. N26 is the clear market leader in mobile banking in Europe; the company is well poised to expand into the U.S. market this year and build one of the leading digital brands globally.”
N26 makes banking flexible and transparent. Features such as real-time notifications, sub-accounts with savings goals and worldwide fee-free card payments set the product apart. Future product features include, for example, easy one-click account sharing. N26 will continue to work on the best banking product for digital customers.
Since the launch of its first product in January 2015, N26 has acquired more than 2.3 million customers in 24 European markets and has processed more than EUR 20 billion in transaction volume to date. Customers currently hold over 1 billion euros in N26 accounts. www.n26.com.
Advisor to Axel Springer: Vogel Heerma Waitz
Dr. Clemens Waitz of the law firm Vogel Heerma Waitz advised Axel Springer Plug and Play (AS PnP) on a EUR 260 million financing of N26.
N26 is the first bank you’ll love. It offers a mobile bank account with no hidden fees. Valentin Stalf and Maximilian Tayenthal founded N26 in 2013 and launched their product in Germany and Austria in 2015. N26 has over 2.3 million customers in 24 countries with money deposits of over 1 billion euros and a monthly transaction volume of over 1.5 billion euros. N26 currently has more than 700 employees in Berlin, Barcelona and New York. With its European banking license, benchmark-setting technology and no expensive branch network, N26 is significantly changing 21st century banking and is available for Android, iOS and via the web app. To date, N26 has raised more than $500 million from renowned investors, including Insight Venture Partners, GIC, Tencent, Allianz X, Peter Thiel’s Valar Ventures, Li Ka-Shing’s Horizons Ventures, Earlybird Venture Capital, Greyhound Capital, Battery Ventures, as well as members of the Zalando board and Redalpine Ventures. Currently, N26 is active in the following countries: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Slovenia, Slovakia, Spain, Sweden and the United Kingdom. In 2019, N26 will also enter the US market. In New York, N26 operates through its wholly owned subsidiary N26 Inc.
About Insight Venture Partner
Insight Venture Partners is a leading global venture capital and private equity firm investing in high-growth technology and software companies that are driving change in their industries. Founded in 1995, Insight currently manages over $20 billion in assets and has cumulatively invested in more than 300 companies worldwide. Our mission is to find, fund and successfully partner with visionary leaders and provide them with practical, hands-on growth skills to drive long-term success. In all our employees and our portfolio, we foster a culture based on one core idea: Growth means opportunities. For more information about Insight and all of its investments, visit www.insightpartners.com or follow us on Twitter @insightpartners.
GIC is a leading global investment company established in 1981 to manage Singapore’s foreign exchange reserves. As a long-term value investor, GIC is uniquely positioned to invest in a broad range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In private equity, GIC invests in companies both through funds and directly, working with fund managers and management teams to help world-class companies achieve their goals. GIC invests in over 40 countries and has been investing in emerging markets for more than two decades. GIC is headquartered in Singapore and employs over 1,500 people in ten offices in the world’s major financial centers. For more information about GIC, visit www.gic.com.sg.