Coming in the black in 2021: N26 is in no hurry to go public

Coming in the black in 2021
N26 is in no hurry to go public

Internet bank N26 has raised a total of $ 570 million from investors since it was founded in 2013. It is now likely to be the most valuable German startup. The fintech does not want to break a stock market debut – and is aiming for at least one more round of financing beforehand.

In preparation for a possible IPO, the Berlin Internet bank N26 wants to come into the black. "We can be profitable at the operational level by the end of next year," said company boss and founder Valentin Stalf in a published interview with the Reuters news agency. When going to the trading floor, however, Stalf feels no hurry: "If we go public in three years from now, that would be very quick." The fact that N26 does not have to break a stock market debut is also due to the attractive financing conditions outside of the stock market. The insurance group Allianz, the Singapore sovereign wealth fund GIC, the Chinese internet giant Tencent, Earlybird and the German-American investor Peter Thiel are all involved in N26.

The company, which was founded in 2013 and raised $ 570 million from its investors, is now valued at $ 3.6 billion, making it the most valuable German startup. "We have some of the strongest investors worldwide who support our plans over the next few years. Before the final IPO, we will certainly make at least one more round of financing," said the 35-year-old. According to Stalf, the corona crisis has had a positive effect on demand: "Despite the crisis, our business is doing very well."

Meanwhile, N26 counts "significantly more than the last five million customers announced". Exact numbers would be announced in early 2021. N26 competes with smartphone banks such as Revolut and Vivid Money, which also score with low fees and user-friendly platforms, but also with conventional providers. In the Corona crisis, N26 is refraining from entering new markets – the planned expansion to Brazil is also off the table for the time being. "In the coming year we will focus on our core markets – Germany, France, Spain, and Italy," said Stalf.

New products should attract customers

It was only at the start of the year that N26 withdrew from Great Britain due to Brexit. However, Stalf does not want to say goodbye to the USA and assures: "That is a big focus." In order to win new customers in the existing markets, N26 relies on product innovations. "In the first quarter we are planning to introduce a new loan offer in Germany, with which individual purchases can be processed retrospectively over time," announced Stalf. In addition, in the course of next year he wants to launch a platform "which is more standardized and which enables many partners to easily connect to N26". Revolut from Great Britain is pursuing similar plans.

Negative headlines recently caused N26 discussions about the establishment of a works council. Stalf wants to draw a line below this before the end of this year: "We will soon establish a global employee representation in addition to our German works councils. We have to work to ensure that our more than 1,500 employees feel comfortable with us. That is essential in order to attract talent to get."

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