N26 adds $100M to Series D

N26 ’s Series D funding round refuses to end. The Berlin-based digital banking startup announced a $100 million extension of its Series D today, adding to an initial $300 million Series D in January 2019 , and a $170 million extension in July. N26 has raised almost $800 million since its 2013 founding and has a valuation of $3.5 billion , according to the company. “We continue to hire selectively,” said Nicolas Kopp, U.S. CEO of N26. “We’re really driving a dual-pronged approach. We’re getting new money to continuously build for the future, but at the same time looking internally at where we can be most resource - efficient during a time of uncertainty.” According to Kopp, the money will help N26 continue to build out its contactless payment mechanisms, adding to its integration with Apple Pay , which was announced in March. Kopp also said N26 will continue to grow its perks partnerships that give customers cash-back rewards on popular online services , like the meditation platform Headspace and the fitness app Aaptiv. At the end of March, the company added the ability for customers to top off N26 accounts from outside accounts without having to leave the N26 app. Kopp said the company plans to iterate at a steady pace, and , although he didn’t give specifics, said N26 is planning additional product releases for the summer and the second half of the year. Despite the new influx of cash, N26’s $3.5 billion valuation is the same as after its $170 million extension in July. Kopp said the company still views t oday’s $100 million extension as successful , given the economic downturn and market volatility. He added that the company will look to its Series E for a valuation bump. The company was in talks with investors about the extension before the pandemic, so the funding was not a response to the downturn , according to Kopp. N26 said in a statement “ all of the company’s major investors” participated in the extension. [caption id="attachment_183449" align="alignright" width="230"] Nicolas Kopp, U.S. CEO of N26[/caption] F ounded in 2013, N26 launched its product in 2015. The company has a European banking license and 1,500 employees, and operates in 25 markets. According to N26, it has a total of more than 5 million users , including 250,000 in the U.S., a market it entered in August . Its banking partner in the U.S. is the San Diego-based Axos Bank. N26 offers customers early direct deposit, savings sub-accounts called “ Spaces, ” and the ability to send and request money from other N26 users. The company makes money from interchange as well as subscription plans available in Europe. See also: N26 crosses 250,000 US customers, grows product suite N26 faces a crowded field of digital banking competitors both in the U.S. and Europe, including Revolut , Varo Money and Chime , which announced earlier this year it has 8 million users. N26 announced in February it was leaving the U.K. due to Brexit upheaval. "N26 has struggled more in the U.K. than anywhere else because we have a diverse and mature market with the likes of Monzo and Starling, so there’s a lot more competition,” David Brear, group CEO at London-based fintech consultancy 11:FS, said in a statement at the time. “Whether this move is actually about Brexit and them feeling they cannot build a sustainable business here, or whether it’s because of the highly competitive market — and they feel they can make a bigger impact, faster elsewhere — we’ll likely never know.” Despite the U.K. decision, N26’s international expansion plans will continue. According to Kopp, N26 is looking to expand to Brazil next. “We’re building this company brick by brick,” he said.

N26 adds $100M to Series D

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