N26 Eyes Value of About $10 Billion in Fresh Fundraising

  • Oops!
    Something went wrong.
    Please try again later.
Jan-Henrik Förster and Eyk Henning
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Bloomberg) -- N26 GmbH is holding discussions with investors to raise several hundred million dollars in a fundraising that could value the German fintech at about $10 billion, according to people familiar with the matter.

The firm, backed by billionaires Peter Thiel and Li Ka-Shing, is working with advisers to seek fresh money at a far higher valuation than previous funding rounds. This could be the final time it raises cash before an initial public offering, said the people, who asked not to be named as the information isn’t public.

A spokesman for N26 declined to comment. Discussions are preliminary and the final valuation will depend on investor demand and could range from around $8 billion to $11 billion, the people said. Its potential value compares to a market capitalization of $8.3 billion for Commerzbank AG, Germany’s second largest lender, and Deutsche Bank AG with $25.4 billion.

The company, which offers digital retail banking services, could join European fintechs including Revolut Ltd. and Wise Plc that have commanded multibillion-dollar values in recent transactions. Others including Nutmeg and Tink AB have attracted takeover interest from global finance giants on the hunt for new sources of growth. However, many fintechs face the same issues as traditional banks in generating returns from customer deposits.

U.K. digital banking rival Revolut raised $800 million from investors including SoftBank Group Corp.’s Vision Fund 2 at a $33 billion valuation, making it the U.K.’s most valuable startup. The new money will be used to fund the London-based firm’s expansion into new products and markets including the U.S. and India, according to a statement Thursday.

N26 reported net losses of 110 million euros for its most recent financial year, citing investment in new products and staff. The firm, founded in 2013, said in January it had 7 million customers in the U.S. and Europe.

The bank has also faced regulatory headwinds including in Germany, where it was told to improve money laundering controls, and the U.K., where it blamed Brexit complications when it withdrew from the market last year.

(Adds Revolut fundraising in fifth paragraph)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting

Recommended Stories

  • PureGym Considers Reviving IPO Plans as U.K. Lockdowns Ease

    (Bloomberg) -- PureGym, the no-frills fitness-center chain, is considering reviving plans for an initial public offering.The company is in the early stages of weighing raising equity in the public markets and is working with private investor and co-owner Leonard Green & Partners on its options, according to an update to bondholders on Wednesday.A potential listing comes as gyms across the U.K. see a rebound in business with the ending of pandemic lockdowns. Total visits to PureGym’s fitness cent

  • Eli, Peyton Manning-Backed BBQGuys in Talks With Velocity

    (Bloomberg) -- BBQGuys, an online retailer of grills, outdoor kitchens and other accessories, is in talks to go public through a merger with Velocity Acquisition Corp., according to people with knowledge of the matter.The combined company is set to be valued at around $900 million, including debt, the people said. Unlike some other recent special purpose acquisition company transactions, there will be no private investment in public equity raised to support the deal, they added.Existing investor

  • China tightens control over cybersecurity in data crackdown

    Tech experts in China who find a weakness in computer security would be required to tell the government and couldn’t sell that knowledge under rules further tightening the Communist Party’s control over information. The rules would ban private sector experts who find “zero day,” or previously unknown security weaknesses, and sell the information to police, spy agencies or companies. Beijing is increasingly sensitive about control over information about its people and economy.

  • Sight Sciences Bulks Up IPO, Targeting $1 Billion Valuation

    The eye-device company said it would sell 10 million shares at $23-$24 each, compared with the nearly 7 million at $20 to $23 it had planned.

  • Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

    The popular fund manager was a rock star in 2020. Check out the moves she's making to stay on top in 2021.

  • Goldman Sachs Sees These 3 Stocks Skyrocketing Over 60%

    The S&P 500 has been rising all year, and to date has posted gains of more than 16%. After a more volatile start to the year, with strong swings up and down from January to the end of May, during which investors pulled back from the tech giants, the NASDAQ has joined the upward trend. Its year-to-date gain now stands at 14%, and like the S&P, sits just under a record high level. But how much room is there for further growth across the board? In an environment like this, investors need to take ca

  • Here's 1 High-Yield Dividend Stock You Can Trust

    On the verge of becoming a Dividend Aristocrat, this high-yield stock has what it takes to keep paying you in good times and bad.

  • Sell These 4 Toxic Stocks to Avoid Losing Money Overnight

    Toxic stocks are vulnerable to external shocks, burdened with high debt and bound to result in loss for investors over time. Discard such stocks from your portfolio right away to avoid losses.

  • Investing $72,036 Into These 3 Stocks Can Generate $300 in Monthly Income for Your Portfolio

    Below, I'll show you how investing approximately $72,036 across three stocks -- Gilead Sciences (NASDAQ: GILD), Altria (NYSE: MO), and Verizon Communications (NYSE: VZ) -- could generate $300 in monthly dividends for you. Healthcare company Gilead Sciences currently pays a yield of 4.2%. Gilead may have disappointed investors over the past year as its COVID-19 treatment, remdesivir, which many thought could be be a silver bullet to stop the virus in its tracks, failed to live up to the hype.

  • 5 Stocks to Buy With Dividends Yielding More than 6%

    With a 6.8% dividend yield, Canadian pipeline stock Enbridge (NYSE: ENB) offers an attractive opportunity for dividend investors. Its liquids operations account for a little more than half of its earnings, while natural gas and other midstream operations make up its remaining earnings. Enbridge's liquids pipelines are strategically located, providing it with resilient cash flows even in volatile energy markets.

  • Why Virgin Galactic Stock Cratered Another 10.6% Today

    Shares of Virgin Galactic Holdings (NYSE: SPCE) fell as much as 13.1% in trading on Wednesday, continuing a slide that's beaten down shares all week. The only announcement out from Virgin Galactic today was the scheduling of its second-quarter 2021 earnings announcement for Thursday, Aug. 5, after the market closes. The sell-off in Virgin Galactic shares began early this week after management filed to sell as much as $500 million in stock.

  • Why ChargePoint Stock Crashed on Tuesday

    Shares of ChargePoint (NYSE: CHPT) crashed today, down by 10% as of 3:30 p.m. EDT, after the company announced it is conducting a secondary offering. The news comes just a few months after ChargePoint completed its merger with a special purpose acquisition company (SPAC). The secondary offering is being launched in order for existing shareholders, primarily early venture capital (VC) funds, to sell stock in an orderly fashion.

  • Wells Fargo's Dividend Hike and Stock Buyback Plan Are a Good Start

    Following the removal of restrictions by the Federal Reserve, Wells Fargo increased its dividend and announced the authorization of a share repurchase plan.

  • 3 Stocks I'll Hold Forever

    Economic cycles result in changes to the business landscape, while the recent pandemic has further altered human habits and practices. A strong competitive moat, coupled with healthy fundamentals, lends further support as to why these businesses can thrive over years or even decades. American Tower (NYSE: AMT) is in a sweet spot right now.

  • 3 Stocks That Turned $1,000 Into More Than $300,000

    Investing in the stock market is one of the best ways to grow your net worth. Since 1971, the S&P 500 has generated average annual returns of 10.9%, allowing patient investors the opportunity to amass life-changing wealth due to the benefits of compound interest.

  • Market Down? Here's 1 Stock to Own for the Long Term

    If the market tanks, there's one retail REIT that has proven itself as a rock-solid long-term holding.

  • USD/INR: Rupee Snaps Three-Day Gaining String, Down 12 Paise In Early Trade

    The Indian rupee snapped three-day gains, depreciating by over 12 paise against the U.S. dollar in early trade Wednesday as the firm greenback and volatile domestic equities weighed on the battered Asian currency.

  • 2 Tech Stocks to Buy at Discounts and Hold for Long-Term Growth

    Some tech names with impressive growth outlooks are still trading at discounts. Let's dive into two of these stocks investors might want to consider as long-term buy and hold candidates...

  • 19 dividend stocks to help you combat inflation

    These stocks have dividend yields that are at least three times as high as the yields on 10-year U.S. Treasury notes.

  • Oil-Spewing Refiner Seeks Bankruptcy After EPA Orders Shutdown

    (Bloomberg) -- An oil refinery that was once one of the largest in North America filed for bankruptcy after a series of environmental breaches and a government-ordered shut down, highlighting pressures faced by the oil industry to curb its environmental impact.Limetree Bay Refining LLC sought creditor protection on Monday after the U.S. Environmental Protection Agency halted its operations earlier this year. The St. Croix, U.S. Virgin Islands-based refinery, which filed for bankruptcy in 2015 un