N26 secures USD 100 million in Series D

Tuesday 5 May 2020 13:37 CET | News

Germany-based fintech startup N26 has extended its Series D round with another USD 100 million of funding at the same valuation of USD 3.5 billion. 

In total, N26 has raised USD 570 million as part of its Series D round. In January 2019, the company announced a USD 300 million Series D at a USD 2.7 billion valuation. In July 2019, the company added USD 170 million at a USD 3.5 billion valuation.

With the new funding, the company wants to double down on its markets — Europe, the US and Brazil. Earlier in 2020, N26 shut down its operations in the UK. But the company will assess the situation when it has secured its license as N26 could postpone its launch in Brazil due to the economic crisis.

N26, like other challenger banks, generates revenue from premium subscriptions, interchange fees, and third-party and in-house financial products that induce fees, such as overdraft and credit.

According to Techcrunch, the startup noticed a shift away from cash as people use their debit card and contactless payment even more than before. Overall, spending volume has been down 20-30% depending on the market. N26 says that subscriptions are ‘quite stable’ and churn is not higher than usual.

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Keywords: N26, Germany, fintech, startup, Europe, US, Brazil, UK, challenger bank, license, debit card, contactless, payments
Categories: Banking & Fintech
Countries: Germany
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Banking & Fintech

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