Germany's N26 readies for US launch with EUR110 million capital injection led by Allianz and TenCent
19 March 2018 | 12787 views | 0
Berlin-based mobile bank N26 has closed a series-C funding round of €110M as it prepares to open up in the United States.
Launched in Germany and Austria in January 2015, N26 began as a current account with a Mastercard. It now operates as a fully-featured bank, providing customers in 17 European countries with access to an instant overdraft, international transfers into 19 currencies through a tie-up with TransferWise, investment options via Vaamo, real-time consumer credits up to EUR25,000, and savings accounts from banks across Europe thanks to a recent deal with Raisin.
N26 has processed over EUR9 billion in transaction volume to date, with a projected volume of more than EUR13 billion in 2018 alone.
The firm says it is currently signing up 5,000 customers per day, with the number of users now standing at 850,000. The goal is to reach more than five million customers by the end of 2020.
N26 opened a waiting list for US prospects in October last year and currently employs eight people in an office in New York.
Rather than go through the arduous licensing process, it will follow the model of neo-banks such as Simple and Moven by partnering with a regulated financial services firm for a launch in June.
The new funding for N26 comes just days after fellow German platform solarisBank picked up EUR56.6 million in fresh capital with contributions from BBVA, Visa, Lakestar and ABN Amro.
CEO and Cofounder Valentine Stalf made the announcement about the funding round internally last week, notifying all employees “we’re now ready to expand and dominate the US".
Investors in the round, which is set to be confirmed in the coming week, are understood to include Tencent, the Chinese firm behind the hugely popular WeChat messaging application, and Allianz through its Allianz X investment arm.