German fintech N26 is currently in talks with investors, with the goal of raising several million dollars in the fundraising process, Bloomberg reported.
This could lead to the company reaching a value of $10 billion.
N26’s potential value would be comparable to a market capitalization of $8.3 billion for Commerzbank AG, the second-greatest lender in Germany, and Deutsche Bank AG with a valuation of $25.4 billion.
The company’s biggest competitor, digital banking service Revolut, just recently raised $800 million from investors, including SoftBank Group 2’s Vision Fund 2.
This helped Revolut reach a value of $ 33 billion, making it Britain’s most valuable startup.
N26 claims that it consolidated its losses during the last year, lowering the net losses in Europe from €165m in 2019 to €110m in 2020. However, N26 did not disclose its non-European losses.
The challenger bank also faces adverse regulatory factors, including in Germany, where it was said it needed to improve its control over money laundering.
An N26 spokesman declined to comment. Discussions are preliminary and the final estimate will depend on investor demand and can range from about $ 8 billion to $ 11 billion.
N26 has also surpassed the amount of 7m customers across Europe and the US this January.
The digital bank managed to add 2m customers during 2020 as it prepares to expand its subscription services and business banking offerings. This still puts the bank behind Revolut with 15m customers.