N26

neobanks / digital banks

FOUNDING YEAR: 2013
LOCATION: Germany
Last Update: 08/09/2020

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MEDICI Analysis

N26 (fka Number26) is a product of Papayer GmbH. It is a licensed German mobile-only bank. It offers mobile banking services to consumers. The company offers opening of a free checking account along with a MasterCard, and a smartphone application that enables users to manage their finances in real-time.

Focus

PRODUCTS & SERVICES

N26 is a licensed German mobile-only bank. N26 raised over $53 million from investors including Horizons Ventures, Early Bird Venture Capital, Battery Ventures and Valar Ventures. Aside from existing banking services, in February 2017, N26 introduced consumer credit service. N26 claims the account can be open in 8 minutes and features: - MoneyBeam (money transfer service via SMS or email) - International money transfers (powered by TransferWise) - Control over personal account on the mobile device in real time - Protection by the German deposit insurance - PULSE26 (PFM) - Overdraft (available only in Germany) - CASH26 - N26 Invest - Fingerprint login with TouchID

REVENUE MODEL

The company‘s revenue model is based on monthly fees on premium accounts, fees on cash deposits at retail stores with 1.5% fee on deposits after the first €100 / month, credit line interest rate, and ATM fees. In addition, N26 receives a commission from MasterCard each time a N26 customer pays somewhere with the card.

EXISTING PARTNERSHIPS

MasterCard

TransferWise

Wirecard (2016)

PRIMARY PROBLEM SOLVED

Aims to simplify banking experience.

COMMENT

N26 lets users transfer money using TransferWise in the mobile app. There’s an investment feature for German customers and the company recently announced a premium Black card with a few insurance features.

Traction

ACTIVE USERS:

0.22 Million in 2017

TRACTION COMMENT:

The company claims that it has customers in 17 European countries with access to an instant overdraft, international transfers into 19 currencies and also provided real-time consumer credits up to EUR25,000. Currently, it the company has signed up upto 5,000 customers per day, with the number of users recently surpassing the one million(March 2018).

People

FOUNDERS

Valentin Stalf

Maximilian Tayenthal

NUMBER OF EMPLOYEES

1000+

INVESTORS:

Allianz X

ARMADA Investment

Axel Springer Plug and Play Accelerator

Battery Ventures

Daniel S Aegerter

Earlybird Venture Capital

Horizons Ventures

Investitionsbank Berlin

Redalpine

Tencent

Valar Ventures

KEY EMPLOYEES:

Valentine Stalf (CEO)

Momentum

FUNDED

YES

TOTAL FUNDING

$682.79 M

DATE OF LAST FUNDING

Jul 2019

TOTAL FUNDING COMMENT

The company is planning use the fund for expanding its geographic in United States and also investors in the round, set to be confirmed in the coming week(March 2018).

SEED & PRIOR FUNDING

$2.03 M

SEED CLOSED ON

Jun 2014

FUNDING SERIES

SERIES A  · $10.76 M  · Apr 2015

SERIES B  · $40 M  · Jun 2016

SERIES C  · $160 M  · Mar 2018

SERIES D  · $470 M  · Jul 2019

LISTED

NO

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N26

About

Focus

PRODUCTS & SERVICES

N26 is Europe’s most modern bank, geared especially towards the needs of smartphone users. The company is now integrating partners and driving innovation faster for customers. In so doing, N26 doesn’t need to develop every product in-house, but rather focuses on the world’s best FinTech offerings and solutions, bringing them onto its platform and making them available with just a few clicks.

Momentum

FUNDED

YES

FUNDING COMPLETED

NO

LISTED

NO