New banks

Challenger bank N26 raises $300 million, gears up for US launch

  • The Germany-based challenger bank has global ambitions.
  • This investment comes after a large round in 2018.
close

Email a Friend

Challenger bank N26 raises $300 million, gears up for US launch

Challenger bank, N26 announced a $300 million Series D round. The funding comes as somewhat of a surprise, as the company closed a $160 million round in early 2018.

The global ambitions of N26: TechCrunch cites three reasons why Germany-based N26 raised this warchest now:

  1. N26’s user base tripled in a year (N26 currently has 2.3 million accounts) and about a third of customers are paying for the company’s premium Black or Metal accounts.
  2. Valuations have grown for the challenger bank. The last round was done at under $1 billion. In this round, N26 was valued at $2.7 billion
  3. The company has global ambitions and is preparing for a U.S. launch. The firm will need deep pockets to penetrate competitive markets.

2019 shaping up to be the year of the challenger banks: N26’s competitors, Monzo (£211.7) and Revolut (£336M) have both raised significantly large amounts of capital and have goals of going global. In the US, they’ll have to contend with domestic challengers, like Chime, as well as the digital arms of incumbent banks, like Chase’s Finn.

 

0 comments on “Challenger bank N26 raises $300 million, gears up for US launch”

New banks

Challenger bank Current rolls out brick and mortar cash deposits

  • Current serves people who live paycheck to paycheck.
  • Based on user feedback, it's making it easier for its clients to deposit money.
Zoe Murphy | September 03, 2020
New banks

Revolut hits 500,000 business customers

  • Revolut hits key milestone in its growth servicing small businesses.
  • The challenger bank has also rolled out a number of enhancements and features.
Michael Deleon | September 03, 2020
New banks

Wealthfront launches Autopilot, automating savings and money management

  • After launching checking accounts, Wealthfront continues to push ahead with its vision of self-driving money.
  • Autopilot helps clients manage their bank accounts through automation.
Zoe Murphy | September 02, 2020
New banks

Varo’s No Fee Overdraft saved Americans more than $100 million over the past year

  • Banks charge billions of dollars of overdraft fees each year.
  • Overdraft fees cover the costs of "free checking" as those who pay them subsidize banking for everyone else.
Zoe Murphy | September 02, 2020
New banks, Podcasts

BMO Harris’ Niamh Kristufek on empowering women in fintech

  • Fintech firms with women at the helm don't receive the same attention and investment dollars.
  • BMO Harris partnered with 1871 on a cohort of women-led fintech firms with the bank's mentorship and programming.
Zachary Miller | September 01, 2020
More Articles