European banking startup N26 has reportedly raised $300 million in new Series D funding. After this newest round of funding, the fintech startup reportedly has a valuation of $2.7 billion.
Planning a U.S. Expansion
The Germany-based N26 is a mobile banking app boasting more than 2.3 million users across 24 European markets. The latest round of funding will reportedly be used to expand into the United States. The most recent round was led be Insight Venture Partners, with participation from several existing investors as well. To date, N26 has raised more than $512 million after six rounds of funding.
Doubling the Valuation in Under a Year
The $2.7 billion valuation reflects the booming value in the young company. Less than ten months earlier, N26 closed a $160 million round of Series C funding which the time gave the company a valuation of less than $1 billion. However, now after having raised another $300 million, having expanded to 24 European markets, having gained 2.3 million users, and furthered plans to expand into the United States, that valuation has more than doubled.
An Easier Way of Banking
Part of the N26 appeal is the way the company streamlines the banking process. In a matter of minutes, users can setup an online bank account and register for debit cards. From there, the rest of the process can be handled online or through the company’s mobile app.
The Challenge of the U.S. Market
Whether or not the venture will work in the United States however, is a different story altogether. As a result of strict U.S. regulations, a radically different banking environment, and a different customer base, few European fintech companies have been able to successfully crack the U.S. market. That said, with the recent $300 million round of funding representing the largest round of private equity financing for a European fintech company, it seems N26 has investor confidence few other fintechs have ever shared.