Challenger bank N26 raises $900m at $9bn valuation

German challenger bank N26 has raised $900m in its latest Series E funding round

N26 headquarters                                 
N26 has hit a $9bn post-funding valuation – Photo: Shutterstock
                                

Berlin-based challenger bank N26 has raised $900m in its latest Series E funding round, bringing the company's total valuation to more than $9bn.

The round, which was announced via a company statement, was led by Coatue Management as well as Third Point Ventures, and joined by Dragoneer Investment Group as well as existing N26 investors. 

The Series E marks the largest funding round for any challenger bank in Europe. N26 has raised a total of $1.8bn in funding to date. 

Disrupting traditional banking

Founded in 2013, N26 was one of the early disruptors in the financial services industry, with the aim of challenging traditional banking and pushing the boundaries in an industry that has remained institutional for many.

CEO Valentin Stalf and Co-CEO Maximilian Tayenthal launched the first N26 product in early 2015, with the aim of transforming how consumers manage their money with the best available technology and minimal service fees. 

N26 has since faced competition from challenger rivals such as Monzo, Revolut and Starling Bank who share the same vision of transforming and changing banking for the better.

Sustainable future growth

Despite profitability challenges over the years, N26 is now one of the biggest challenger banks in Europe, with more than seven million customers in 25 countries. The start-up’s growth is impressive, as it is on track to process over $90bn in transaction volume in 2021.

Valentin Stalf, CEO and co-founder of N26, commented on the funding news: “This recent financing round solidifies the fact that retail banking as we know it has changed. With our fresh capital, we are in pole position to become one of the biggest retail banks in Europe, all without a single branch.”

Heath Terry, a partner at Third Point Ventures, added: “N26 has established itself as a leading tech-forward global digital bank. We are excited to provide capital and strategic support to accelerate N26’s work to make digital retail banking accessible to millions.”

N26 will use the funding to expand its mobile banking offering as well as scaling its team by 1,000 team members globally, with a focus on product, technology and cybersecurity. 

Further reading: UK fintech Monese nears 'unicorn status' with talks of £100m deal

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