Number26 raises $40m
21 June 2016 | 5551 views | 0
Berlin-based smartphone-only bank Number26 is set to expand its presence across Europe after closing a $40 million Series B funding round led by Horizons Ventures
Battery Ventures, Robert Gentz, David Schneider and Rubin Ritter also joined the round alongside existing investors Peter Thiel’s Valar Ventures, Earlybird Ventures and Redalpine Ventures. Number26's total funding is now more than $53 million.
Launched in January 2015, Number26 has quickly established itself as a leader of the new pack of European digital-only bank challengers, attracting more than 200,000 customers in eight European countries.
The rapid growth has not been without its problems, though. Earlier this month the startup faced a backlash on social media after canceling hundreds of customer accounts. Eventually it provided an explanation - that some users were making too many ATM withdrawals, arousing KYC compliance fears and also biting into the startup's cost base.
The Series B funding will help accelerate additional geographic expansion and the integration of new products like savings, investment and credit to "create a true fintech platform," says a statement.
Valentin Stalf, founder and CEO, Number26, says: "Even given our success to date, we believe we are only at the beginning of our journey to bring better mobile banking to millions of customers across Europe, transparently and at much fairer prices."