This way N26 became the second highest-valued bank in Germany, slightly ahead of Commerzbank.
Read also: Nik Storonsky has opened family office in London
This funding comes from Third Point Ventures, Coatue Management, Dragoneer Investment Group and existing N26 investors, N26 said.
The money will be used for the development of products in the mobile application and the employment of 1,000 new employees. They are supposed to deal with areas such as technology and cybersecurity.
N26 now has enough “financial leeway” to prepare for an initial public offering, CEO Tayenthal said, adding that he expects the firm to be “structurally IPO-ready” within the next 12 to 18 months.
“We have no hurry to go public,” Tayenthal said. “With increasing profitability, the kind of money we are raising right now, it really takes away any time pressure.”
Fintech also has a banking license in Brazil, and already employs 40 people in Sao Paulo. Brazilians will be able to use the N26 application as early as 2022.
Just a few weeks ago, fintech N26 was fined over EUR 4 million. The penalty was imposed by the German financial supervisory authority – BaFin.
The reason for this decision is the shortcomings of the bank in the field of anti-money laundering (AML).