Banking N26 increases another $ 170 million in $ 3.5 billion valuation – TechCrunch

Fintech startup N26 increases $ 170 million a few months after increasing $ 300 million. While it is technically structured as a new round, the company considers the current new funding as an extension of the series D round.

N26 has only reached out to existing investors. All investors in the Series D round invest again, as well as a few investors who have been around for a while. So there are Insight Venture Partners, GIC (Singapore's sovereignty fund), Tencent, Allianz X, Peter Thiel's Valar Ventures, Earlybird Venture Capital and Greyhound Capital.

"There is an increase in valuation of about 30%. There are only existing investors who participated. We did not go remotely as it is also quite fast after the round as we did earlier this year," says co-founder and CEO Valentin Stalf. "But I think there is good evidence of the development of the company over the last couple of months."

With this new influx of funding, the N26 has now reached a $ 3.5 billion security after money, raising a total of $ 670 million. And the N26 says it's now the most valued German startup and one of the most valuable fintech startups in the world.

N26 has built a better functioning bank, allowing you to sign up from your phone, get one cards you can control from the phone and make purchases all over the world without foreign transaction fee, and the company has managed to attract 3.5 million customers across Europe.

N26 recently launched its release claim bank in the United States. The company plans to expand into Brazil in the coming months and launch more products to help you manage your money. Many features will be based on Spaces, which are sub-accounts that allow you to separate your money into multiple pools and eventually share rooms with others.

I talked to N26 founder and CEO Valentin Stalf about the future of the N26. Here is our interview, which was edited for clarity and brevity.

TechCrunch: You announced N26 You already. What is the idea behind it?

Valentin Stalf: We launched it yesterday or yesterday. There are different card colors, and we separate our premium class [N26 Metal] a little more from the midline [N26 You]. I think it was a bit alike.

But now, N26 You are more individual. And then it comes together in a couple of weeks when we start several cards for an account. You can have different colors. And then, with Spaces, I think we're trying to build the most flexible bank account to live and think.

And then in the next quarter we will do an app update with a transaction-based timeline.

TC: Does that mean that because of the new colors, people will get more cards and add one card to one space?

Stalf: Finally, you will be able to freely attach the cards to different rooms. It is not even so important that you attach a card to one room. Sometimes people will have several cards. But if you only use one card, you can switch a transaction to another room.

TC: Now that you give perks from N26 Metal to N26 You, what does that mean for metal customers? Do you only get another card?

Stalf: I think with Metal, we should go more and more in the premium direction.

We also mentioned that we should be relaunching our insurance packages. The new package will be based on travel, but also mobility. You have many things in the mobility area, including scooter riding.

TC: Let's talk about product. You talked about shared rooms and several cards.

Stalf: With the app update as we do, it's not just a frontend design update, it's really an update of the way we talk to our customers and how we present transactions. We change what you see on the app's timeline.

We want to give you more context and we can't make it smarter. We integrate customer support interactions, we integrate transactions that didn't work … These features will launch over time.

We launch the infrastructure and then we launch all the features. For example, you have the opportunity to start a customer service interaction directly from a transaction, right to live chat.

And it comes along with the common room. It is also something that must be reflected in the timeline in a smart way. Some of the transactions that may appear in the timeline may not be possible, but perhaps by some others.

Depending on the transaction you make, we move more details to the timeline directly based on what we think is important. So let's say there is a transaction in a new country, maybe you want to see the exchange rate in the timeline directly. If it is rent, send the same amount each month, you do not need to see more details. It just needs to say rent ̵[ads1]1; okay good.

TC: What did you promise when you raised a little more money? New countries, user numbers, improved monthly transaction volume?

Stalf: We have the opportunity to build a bank with over 50 million users worldwide. Today we only have 3.5 million users, but we are accelerating.

From a country perspective, we have already agreed that we are going to Brazil. There is no plan for Brazil yet. Now let's focus on the United States, then in Brazil, so next year we find out what the feedback from these two markets is.