German fintech N26 founder and CEO Valentin Stalf is reportedly planning for an additional funding round ahead of its initial public offering (IPO) in 2023.
The fintech firm is looking to breakeven on an operating level by the end of 2021 and eyeing for additional funding before going public, Reuters reported.
Go deeper with GlobalData
Stalf said that the conditions for raising capital from private investors remained striking.
He said: “If we list on the stock exchange in three years that would be fast.”
Stalf added that the Covid-19 pandemic had no impact on N26’s trading activities, however, the firm has shelved the plans to expand into new markets including in Brazil.
Instead, the company now aims to focus on its Germany, France, Spain and Italy core markets.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataMoreover, Stalf is also under scrutiny for allowing its staff to set up a works council in Germany.
A global employee representation will be established by 2020-end, he said.
Stalf added: “We have to work on making our more than 1500 employees feel comfortable with us. That is essential to get talent.”
Founded in 2013, N26 mobile banking app operates a scalable, low-cost model that has attracted several investors.
In May, N26 raised over $100m after extending its Series D funding round to $570m.
The extra $100m came from existing backers including Insight Venture Partners, GIC, Tencent, Allianz X and Valar Ventures.
Additionally, this extension brought the firm’s total valuation to $3.5bn.
In October, N26 said that it was eyeing for fresh fundraising in 2021 as it seeks to increase its valuation to above $3.5bn.
So far, the mobile bank has raised nearly $800m.
Its other investors include venture capital firm Earlybird and Silicon Valley-based investor Peter Thiel.
Earlier this year, N26 onboarded as many as 250,000 customers in the US within five months and had a total of over five million customers.
However, in February, N26 bailed out of the UK market in less than 18 months after launch, blaming Brexit.
