German challenger bank N26 announced a $900 million Series E funding this October. N26 coupled that announcement with another, that it was renewing its focus back to its home markets, central and eastern Europe, and would pause its activity in the US market.
N26’s latest funding values the firm at $9 billion, a significant jump from its $3.5 billion valuation at the time of Series D. N26 is now the most valuable fintech out of Germany and ranks among the top 20 globally.
Since publicly entering the US market in partnership with Axos Bank back in August 2019, N26 released a variety of services in the country, like contactless payments, easier account funding, 2-day early direct deposit, spending limits, ATM locator, discounts, and other perks.
This initial offering powered the bank to claim it had registered some 500,000 customers in the US. However, with its latest funding, the firm has pulled back on its operations in the US. From half a million customers, it has now reverted to having a waitlist in the country.
This forces one to wonder whether this is another case of a European fintech firm withdrawing from the US market. Earlier, British fintech Monzo withdrew its request for a banking license in the US, following discussions with regulators and the Office of the Comptroller of the Currency. Revolut’s second US CEO, Ronald Oliviera, will be leaving the firm over the next few months. While it is unclear where Oliviera is headed next or why he quit the firm, there have long been reports about Revolut’s questionable work culture, with unpaid work, unachievable targets, and high-staff turnover, according to an insider.
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