N26 just earned unicorn status with a $300 million funding round

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German neobank N26 has
raised
 a $300 million Series D funding round led by Venture
Partners, with participation from GIC and other existing investors.
This brings N26’s funding to date to over $500 million and its
valuation to $2.7 billion, making it the latest fintech unicorn, as
well as one of the highest-valued fintechs in Europe.

Major European Neobanks' Customer Numbers

Additionally, this is the largest funding round that has been
secured by a European neobank, though Revolut is in
talks
 to raise $500 million from SoftBank. N26 is live in 24
markets and has over 2.3 million customers.

N26 will use the funding to expand globally, starting with the
US. The fresh capital will fuel the neobank’s expansion plans,
according to the press release, including its US launch, which is
slated for the first half of 2019. Additionally, N26 wants to
expand to Asia and South America, but it hasn’t yet disclosed any
specific countries of interest, reports The
Financial Times.

N26 will likely have to spend big on these plans, as it will
need to hire staff and compliance teams in all of these new
markets, and this latest funding round will go a long way in
supporting those efforts. Meanwhile, although it’s not in the black
yet, N26 is profitable on a per customer basis, according to The
FT. This means that it likely won’t have to use a large chunk of
the funding to cover losses.

This latest round indicates strong investor confidence in N26’s
future success — and its geographic expansion.Many European
neobanks are eyeing the US market, including Revolut and Monzo.
However, very few players are looking at other markets, such as
South America, for their global expansion, despite large portions
of these consumers being financially underserved.

N26’s intention to roll out its services in more countries
likely played a role in securing such a large round from investors.
This strategy will help the neobank to establish itself globally
and ensure that it builds a sustainable business that can
eventually become profitable.

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Source: FS – All – Economy – News
N26 just earned unicorn status with a 0 million funding round