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Home / unitedstates / The German online bank N26, backed by Peter Thiel, collects $ 170 million

The German online bank N26, backed by Peter Thiel, collects $ 170 million


Valentin Stalf, founder and CEO of N26, speaks on stage at the Digital Life Design innovation conference.

Lino Mirgeler | Alliance images through Getty Images

The German online bank N26 said on Thursday it earned an enormous additional financing of $ 170 million, which valued the launching of the findech of six years to $ 3,500 million.

With its headquarters in Berlin, N26 has produced waves in Europe with its checking account based on applications and its debit card. The company does not operate any brick and mortar branch, but has managed to attract more than 3.5 million customers in 24 countries on the continent.

The last injection of capital is a collection of funds for the collection of funds of $ 300 million of the company, which was announced in January, which was valued at 2.7 billion dollars. N26 said that existing investors, including Valar Ventures by Peter Thiel, the Chinese technological giant Tencent and the sovereign wealth fund of Singapore, supported this last round.

"I think that investors around the world see disappointment customers face retail banking," said CEO of N26, Valentin Stalf, at the CNBC in an interview. "At the same time they see that it is a huge market."

He added that the water assessment of the firm is "decent and really low" for a company of this type. "I think the company has the opportunity to value much more in the future," said Stalf. In comparison, the British competitor Monzo was recently valued by investors with 2,500 million dollars in its final round of financing.

Fresh money will help N26 increase contracting and feed your global expansion strategy. Currently, the company has 1,300 employees worldwide. After launching the United States recently, Fintech's German firm now has its target in Brazil and will be launched next year.

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Stalf described Brazil as "one of the most attractive retail banking markets" and "more confusing". You will find a direct competitor there for the mobile borrower of Latin America, Nubank.

The investment will also finance the development of N26 products, as the company seeks to redesign its application and bring new functions to boost participation and win more customers from established banks. A feature of the pipeline is a tool called "shared spaces", which will allow users to create sub-accounts that can be shared with friends.

Think of it as "sharing an account with friends as a WhatsApp group," Stalf said, letting them split invoices or arrange vacations. The N26 will also introduce a chronology to pass the story, add the ability to connect multiple cards to the application and use artificial intelligence to highlight irregular and potentially fraudulent transactions, said the head of the company.

The new investment makes the total funding of N26 reach more than 670 million dollars. It follows a series of high reputation offers this year in the rapidly growing sector of financial technology in Europe. According to CB Insights, venture capitalists launched $ 1.7 billion in the fintech industry of the continent only in the first quarter of 2019.

But while the so-called neobanks like the N26 have attracted millions of clients and a lot of investment, they have struggled to translate their wild growth into profits. Although not yet a profitable company, N26 claims that it is seeing the improvement of margins by customers.

"Most neo-Bans are not profitable yet because they grow rapidly and they are new companies," CNBC Andrew McCormack, Valar Ventures partner, told CNBC. "The N26 has very strong contribution margins for each client, which are improving rapidly, so that investors are so eager to invest."

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