“German Nubank”, receives contribution of US $ 100 million

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The N26 president told CNBC that the company wants to be “well prepared” for the financial impacts, but that there is no shortage of cash

The German digital bank N26, created in 2013, announced an investment of 100 million dollars in order to prepare for the pandemic crisis. The information was released to the British television network CNBC.

The investment was led by investors who had previously invested in the N26, such as Chinese technology company Tencent and Valar Ventures, a venture capital fund owned by American businessman Peter Thiel, the creator of PayPal. The N26 says the investment is an extension of its D series investment round, announced last year.

Altogether, the digital bank has already raised 770 million dollars in contributions and has a market value of 3.5 billion dollars. CNBC, N26 president Valentin Stalf, classified the investment round as “successful”, especially in the midst of the uncertainties that hit the capital market this year amid the pandemic of the covid-19, a disease caused by new coronavirus.

The crisis is also one of the reasons behind the N26’s decision to raise more money. Stalf said he wants to be “well prepared” to face the crisis. The use of the N26 fell in March at the beginning of the lockdown, with a reduction in spending by the population, but the N26 says that, as the quarantine progressed, the transactions recovered. There has also been an increase in the use of digital banking services, including among customers over 65, according to the company.

Despite the trend that benefits digital banks during isolation, Stalf says the N26 is “overhauling every line” of its costs and that it has cut marketing budgets.

The executive says that, although he has decided to get a new contribution, the N26 is not low. “We have always been a well-financed company. For us it is an opportunity to raise more capital ”, he said. “With the economic crisis generated by the pandemic, I think that we as a company are at least preparing for an impact that will still be happening at the end of the year.”

The N26 has 5 million customers in Europe, being one of the largest in the wave of digital banks that has taken over Europe and the world in the last decade. Digital banks have a business model with less physical presence, without branches, and attract customers with services such as account and credit card with lower or nonexistent rates.

Arrival in Brazil

The German bank even announced that it would start operating in Brazil last year and still has a page on the air for customers to register on the waiting list. Fintech, however, did not comment on the entry into the country anymore. The coronavirus crisis certainly helps to delay plans.

In the Brazilian market, the N26 would face consolidated rivals. The largest representative of the category is Nubank, also created in 2013. Created as a credit card with no annual fee and later expanding the operation to other services, Nubank today has more than 20 million customers in Brazil and a market value of 10 billion of reais. Last year, fintech started expanding to other countries in Latin America, such as Argentina and Mexico.

Names like C6 Bank, with more than 1 million customers, Neon, with 2 million, and Banco Inter, with more than 4 million, are also expanding the offer of digital banking products.

N26 card and app
N26: German bank created in 2013 has 5 million customers (N26 / Disclosure)

Source: https://exame.abril.com.br/pme/n26-o-nubank-alemao-recebe-aporte-de-us-100-milhoes/

The N26 president told CNBC that the company wants to be “well prepared” for the financial impacts, but that there is no shortage of cash

The German digital bank N26, created in 2013, announced an investment of 100 million dollars in order to prepare for the pandemic crisis. The information was released to the British television network CNBC.

The investment was led by investors who had previously invested in the N26, such as Chinese technology company Tencent and Valar Ventures, a venture capital fund owned by American businessman Peter Thiel, the creator of PayPal. The N26 says the investment is an extension of its D series investment round, announced last year.

Altogether, the digital bank has already raised 770 million dollars in contributions and has a market value of 3.5 billion dollars. CNBC, N26 president Valentin Stalf, classified the investment round as “successful”, especially in the midst of the uncertainties that hit the capital market this year amid the pandemic of the covid-19, a disease caused by new coronavirus.

The crisis is also one of the reasons behind the N26’s decision to raise more money. Stalf said he wants to be “well prepared” to face the crisis. The use of the N26 fell in March at the beginning of the lockdown, with a reduction in spending by the population, but the N26 says that, as the quarantine progressed, the transactions recovered. There has also been an increase in the use of digital banking services, including among customers over 65, according to the company.

Despite the trend that benefits digital banks during isolation, Stalf says the N26 is “overhauling every line” of its costs and that it has cut marketing budgets.

The executive says that, although he has decided to get a new contribution, the N26 is not low. “We have always been a well-financed company. For us it is an opportunity to raise more capital ”, he said. “With the economic crisis generated by the pandemic, I think that we as a company are at least preparing for an impact that will still be happening at the end of the year.”

The N26 has 5 million customers in Europe, being one of the largest in the wave of digital banks that has taken over Europe and the world in the last decade. Digital banks have a business model with less physical presence, without branches, and attract customers with services such as account and credit card with lower or nonexistent rates.

Arrival in Brazil

The German bank even announced that it would start operating in Brazil last year and still has a page on the air for customers to register on the waiting list. Fintech, however, did not comment on the entry into the country anymore. The coronavirus crisis certainly helps to delay plans.

In the Brazilian market, the N26 would face consolidated rivals. The largest representative of the category is Nubank, also created in 2013. Created as a credit card with no annual fee and later expanding the operation to other services, Nubank today has more than 20 million customers in Brazil and a market value of 10 billion of reais. Last year, fintech started expanding to other countries in Latin America, such as Argentina and Mexico.

Names like C6 Bank, with more than 1 million customers, Neon, with 2 million, and Banco Inter, with more than 4 million, are also expanding the offer of digital banking products.

N26 card and app
N26: German bank created in 2013 has 5 million customers (N26 / Disclosure)

Source: https://exame.abril.com.br/pme/n26-o-nubank-alemao-recebe-aporte-de-us-100-milhoes/

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