Germany’s N26 is Europe’s most valuable start-up with $2.7bn valuation

Digital bank previously raised $300 million to fund international expansion in US and Asia

Cofounder and chief executive of smartphone-based bank N26, Valentin Stalf, attends a session at the Paris Fintech Forum Photograph: Eric Piermont/AFP/Getty

Cofounder and chief executive of smartphone-based bank N26, Valentin Stalf, attends a session at the Paris Fintech Forum Photograph: Eric Piermont/AFP/Getty

 

German digital bank N26, which offers accounts to Irish customers, has become Europe’s most valuable financial technology start-up after raising $300 million to fund its international expansion.

The investment values the Berlin-based online lender at $2.7 billion, around three times the valuation achieved at its last fundraising less than a year ago.

Valentin Stalf, N26 chief executive, said the money would give it the “investors and financial power to really bring this company to the next stage”, including opening in the US in the first half of this year.

On top of an “aggressive” expansion in the US, via a partnership with an unnamed US bank, the company is considering further moves into several South American and Asian countries, but Mr Stalf said it would make a final decision on which markets to focus on later this year.

N26 operates in 24 European markets. Its 33-year-old chief executive said its overall customer base had more than tripled in 2018 to 2.3 million.

It is one of a wave of new digitally-focused banks to spring up in the last few years, alongside rivals such as Monzo and Revolut. – Copyright The Financial Times Limited 2019