Just months after a fundraising round that left the company's value at $3.5 billion, Berlin-based FinTech N26 is exploring seeking additional investments in calendar 2021, Bloomberg reported Monday (Oct. 12).
N26 “has been in contact with potential advisers for the fundraising, though discussions are at an early stage and no final decisions have been made, the people said, asking not to be identified because the deliberations are private," Bloomberg's article states. "A spokeswoman for the company said there “are not yet any concrete plans for another funding round at this present moment.”
N26 already has raised nearly $800 million in venture capital, Bloomberg reported, including a $100 million round in May 2020.
FinTech companies are expected to benefit over the long term from customers’ shift to online banking due to COVID-19. N26’s native Germany is among countries whose citizens were considered especially wedded to cash prior to the pandemic.
N26 is among the financial institutions that have benefited from flexibility in meeting customer expectations that is only possible because they are what the industry refers to as “digitally mature” institutions.
Venture capital investment in Europe’s FinTech industry has surpassed $35.4 billion since 2014, Bloomberg reported, citing data from Dealroom.
N26 launched in the United States in August 2019 and on its first anniversary announced it had 500,000 customers in the country.
The company has 1,500 employees serving more than 5 million customers in 25 markets, its website states.
N26 announced earlier this year that it was leaving the United Kingdom and attributed the decision to Brexit, a move and explanation that did not sit well with some account holders, CNBC reported.