FINANCE - FINTECH

Fintech

German neobank N26 raises $900m in funding



The German online bank - Forbes' best bank of the year - announced a fundraising round of nearly a billion dollars, in which Luxembourg-based Ilavska Vuillermoz Capital will participate. (Photo: N26)

The German online bank - Forbes' best bank of the year - announced a fundraising round of nearly a billion dollars, in which Luxembourg-based Ilavska Vuillermoz Capital will participate. (Photo: N26)

N26 announced on Monday that it has completed a $900m Series E round of funding, valuing it at more than $9bn and putting it in the top 20 of global fintechs.

“This round of financing confirms our conviction that we must continue to transform the retail banking model, which no longer meets the needs and uses of consumers in their daily lives in its traditional form. These new funds will allow us to recruit, innovate and grow in order to establish ourselves as one of the largest retail banks in Europe,” commented N26 CEO and co-founder Valentin Stalf.

“It's a source of pride to be part of the rise of a European giant,” said N26's managing director for France and Benelux, Jeremie Rosselli.

The German fintech raised more than $900m in Series E funding from Third Point Ventures and Coatue Management, joined by Dragoneer Investment Group alongside historical shareholders, like Luxembourg-based Ilavska Vuillermoz Capital.

Over the next two years, N26 will recruit around 1,000 employees for its eight offices in Berlin, Barcelona, Madrid, Milan, Paris, Vienna, New York and São Paulo, to continue product development, innovation and to keep an eye on security issues. The share plan will be available to each of its current 1,500 employees as a thank you for continuing to work under the difficult conditions of the covid-19 pandemic.

After seven years of growth, the online bank will limit its new customers to between 50,000 and 70,000 per month. This year it has already carried out $210bn worth of transactions and was named the world's best bank by Forbes.

This story was first published in French on Paperjam. It has been translated and edited for Delano.