N26 CEO Valentin Stalf is bursting with self-confidence and wants to “turn one of the largest industries around with the best investors in the world” – the financial sector.
If we had slipped the mobile smartphone bank N26 this week in our article N26 versus Revolut still slack 2 million customers, the FinTech corrected us today with new values: it’s now more than 2.3 million. These are not the only arrows that the smartphone bank has in the quiver, there is more to report. Because we are in numbers and facts, we start exactly with them – and these facts are quite impressive in the overview.
N26 in numbers
The FinTech calculates that it has tripled its customer base in the last 12 months alone. The fact that the once-moderate curve has been rising steeply since the beginning of the year can be explained by these values:
- Year of foundation: 2013
- Employees: over 700
- Customers: 2.3 million
- Cash deposits: over 1 billion euros
- Transaction volume: over 1.5 billion euros per month
- Investment volume: more than 500 million US dollars
- Rating: $ 2.7 billion
We have already called N26 a heavyweight before the current rating – but the smartphone bank’s Unicorn rating of $ 2.7 billion pushes it into a new dimension.
The Unicorn and its investors
While War N26 has been well supplied with capital from well-known investors, additional capital can also be used to correct the ambitious targets. Neo-Bank has recently raised $ 300 million in its Series D round of financing under the leadership of New York-based venture capital firm Insight Venture Partners. GIC, an investment fund of the state of Singapore, also participates in the round.
With its $ 300 million investment, N26 is at the forefront of major private equity financing rounds in recent years for FinTech companies in Europe. So far, N26 has collected more than $ 500 million. However, it is not just the massive sum of half a billion that impresses – the even stronger signal is the investors’ belief in the idea and path of N26.
Harley Miller, Principal at Insight Venture Partners, expresses this trust with the following words:
N26 is the clear leader in mobile banking in Europe – the company is well prepared to expand into the US market this year and build one of the world’s leading digital brands
Investors include Tencent, Allianz X, Peter Thiel’s Valar Ventures, Li Ka-Shing’s Horizons Ventures, Earlybird Venture Capital, Redalpine Ventures and Greyhound Capital.
Where should the journey go?
The whopping financial cushion should help to reach full goal the stated goal: N26 wants to be the first global mobile bank. The mobile smartphone bank is already successfully on the move in 24 markets in Europe. In order for “global” to present itself in a correct context, N26 capitalizes on the fresh growth for global expansion and starts with the launch of its app in the US in the first half of 2019.
While the targeted growth targets were a bit more modest recently, the company now wants to reach the mark of over 100 million customers worldwide in the years to come.
Valentin Stalf, CEO and co-founder of N26, on motives and plans:
Too many people around the world still use bad digital banking products and pay too much. With Insight Venture Partners and GIC, other well-respected investors join in, and now, more than ever, we have the opportunity to turn one of the largest industries around with the best investors in the world.
Not only is it possible, it’s more possible – faster than expected
We’ve summed up this week on challenger banks that neo-banks have provided and delivered proof: it’s possible. It is feasible and can succeed in redefining banking and financial services with a strong idea and inspiring growing customer groups. This applies to several protagonists in Europe, such as Revolut, Atom, Monzo, Starling and others.
Surprising in this “possible” is the pace. Between the small startup N26 with a strong idea and the unicorn with 500 million investor funds in the back and a valuation of 2.7 billion dollars are just five years.
As N26, Revolut and other challenger bankers continue to grow at this rate, they are and will become faster and more likely to become strong and tangible competition for traditional financial institutions.