German digital bank N26 has reached a $9bn valuation, following the close of a $900m investment round, which it claims to be the largest financing of a digital bank in Europe.
The investment was led by New York-based investors Third Point Ventures and Coatue Management, with Dragoneer Investment Group also supplying funds to the round. Several existing N26 backers also participated in the round.
Funds from the round will help N26 scale its global team, with it hoping to hire 1,000 new members in the coming years. Hiring will focus on product, technology and cybersecurity.
Additionally, funds will be used to expand its employee equity pool, while broadening Employee Stock Ownership Plan (ESOP) participation to 100% of employees.
To support its sustainable future growth, the digital bank has agreed with the German regulatory temporarily onboard a maximum of 50,000 – 70,000 customers per month. It also stated new customers in certain markets might be placed on a temporary waiting list.
Valentin Stalf, CEO and co-Founder of N26: “This recent financing round solidifies the fact that retail banking as we know it has changed. With our fresh capital, we are in pole position to become one of the biggest retail banks in Europe, all without a single branch.”
Goldman Sachs Bank Europe served as the placement agent for the round.
The digital bank recently entered the insurance space, launching a tool buy cover, manage plans and initiate claims.
N26 was issued a €4.5m fine earlier this year by the Federal Financial Supervisory Authority (BaFin) for its delay in submitting reports around AML. The bank paid the fine in July 2021.
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