The German startup N26 has just raised a $ 160 million series C round led by Tencent and Allianz – some existing N26 investors are also participating. The company attracted 850,000 customers and raised $ 215 million in total. N26 builds a retail bank from scratch.
The company plans to double everything it has done so far. This means more expansions, more partnerships with other fintech products more features and more engineers. Allianz invests through his investment arm Allianz X.
“I think Tencent and Allianz are a great combination or investors,” said N26 co-founder and CEO Valentin Stalf. “Over the last 10 years, Tencent has become one of the world’s five largest companies – pioneering in the field of mobile payment and financial technology in general.”
Tencent is the company behind WeChat, WeChat Pay mobile payment service, WeBank, TenPay and countless products.
“On the other hand, when you look at Allianz, it’s one of the most traditional financial companies in the world and also in Germany,” he continued. . “It is a traditional brand that also believes in the changes of the financial industry.”
The company goes even further and sets ambitious goals with this tour de table. N26 plans to reach more than 5 million customers by 2020. This year, N26 plans to process a trading volume of $ 16 billion (13 billion euros). The British competitor Revolut is currently processing $ 1.5 billion a month. It seems that there is enough room for both to grow up for the moment.
This round of financing really brings N26 to a pre-IPO stage Valentin Stalf
While many companies are using fundraisers to share information on their roadmap, N26 has already announced a few things. N26 plans to roll out its product in the United States and the United States later in the year.
Some products, such as savings, investment, overdraft and insurance are limited to Germany and / or Austria. The company will deploy these features in other markets in the future.
It is also worth noting that N26 is now talking about leveraging artificial intelligence to create a smart banking experience. So, you can expect a certain level of automation in the future if you are in agreement with a robot managing your money.
I have also asked Stalf for projects to expand beyond Europe and the United States given Tencent’s investment, but this is not the case. not in the road map for the moment. “That does not mean that we intend to go to Asia,” he said.
There are now 380 people working for N26. The company plans to hire more people, which should speed up product updates. And here are two things you can expect this year. First, N26 works on shared accounts so that you can use your N26 account with your significant other. Second, you can expect multi-currency features after the launch of the UK.
“It’s a good round to be as independent as possible,” Stalf said. “This round of financing really brings N26 to a pre-IPO stage, I think we’re seeing a clear path to a very sustainable business with this round of financing, maybe in the next five years there will be an IPO. . “
This is a way of saying that the valuation of N26 is now too high for a quick acquisition. Nevertheless, it is great to see a potential European technology giant grow so quickly and want to remain an independent company.