Berlin-based Bank N26 Raises an Extra $100m During Lockdown
It’s no secret that I’m a massive fan of digital banking. In a way, I believe it’ll lead the charge for adoption of future technologies en mass due to the nature of it being up close and personal with consumers. More on that another time.
For now, one of the big players in the FinTech Banking game, N26, has managed to raise an extra $100 million in their series D funding round — despite the current global lacklustre appetite for investment, thanks Coronavirus.
The total funding round has come to a whopping $570 million, which they say is:
“reaffirming their [investors] support of our vision to transform banking around the world.”
N26 is a Berlin-based startup bank currently valued at $3.5 billion, making it one of the most valuable FinTech companies globally to date.
While the cash injection is reassuring, the company is still being cautious about the economic impact coronavirus will have across their operating markets.
Their senior management staff, which includes founders Valentin Stalf and Maximilian Tayenthal, have agreed upon a 25% pay cut for this year. As well as that, they have placed 10% of their workforce, some 150 employees, on Germany’s Kurzarbeit scheme.
The scheme works much like the U.K Furlough scheme. On the plan, employees work reduced hours and receive 60% of their net income for up to 12 months while remaining on company payrolls. Doing so helps keep employees from being laid off during the crisis.
Beyond the crisis, the N26 founders have big visions for where they want the company to go in the next few years. They say the latest investment will help them to consolidate their 24 European markets as well as bolster their presence in the U.S where they now have over 250,000 users.
While they are considering re-entering the U.K market in the future, after pulling out after 18 months due to Brexit, right now they are honing in on a potentially more significant opportunity — Brazil.
All of this is pretty exciting stuff that is happening in the FinTech Banking space despite the global pandemic and its potential implications on our economy. However, if one is careful and considered, these times can prove to be the best opportunity for truly innovating and disrupting existing marketplaces.
The shift in our collective attitude away from physical interactions, particularly in terms of payments, towards the adoption of contactless integration across the board can only help to strengthen the value of digital banking startups like N26.
Originally published at https://fintechcentral.co.uk