Investor Cuts N26 Rating by More Than Half

How much is N26 worth? A clear answer to this question was last given in autumn 2021, at least from an official source. At that time, the Berlin-based fintech company confirmed a new round of financing amounting to the equivalent of $900 million (€777 million). In the process, the fintech company was valued at around $9 billion (€7.8 billion).

Almost two and a half years later, the world is different. The Ukraine war and rising interest rates are weighing on the economy, and investors are trimming down fast-growing and previously loss-making tech companies in particular. And N26? According to the fintech company, it is benefiting from the new interest rate environment and recently expected a significant increase in net sales of around (€200 million). The more than 1,500 employees have so far also been spared large waves of layoffs.

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N26 is said to be worth “only” three billion

Nevertheless, there is hardly any positive momentum at N26: The fintech company is still groaning under the strict conditions of the financial regulator, according to which a maximum of 50,000 new customers per month may be accepted. The British rival Revolut, with which N26 was still fighting head-to-head for European market leadership a few years ago, has long since pulled away uncatchably. And according to current reports from the Financial Times and Manager Magazin, even N26 investors no longer seem to believe in the previous valuation standards.

As a result, the existing investor Allianz X intends to sell shares in the fintech. It is about a share package of five percent, as the business newspapers report. Explosive: The investment arm of the insurance group has calculated a massive valuation discount in this context. According to internal papers, the sale of Allianz X’s N26 shares could bring in up to $160 million, which would correspond to a company valuation of around $3 billion – a good 66 percent less than in 2021.

Allianz X could triple its investment

The Allianz subsidiary has been invested in N26 since 2018. At that time, the VC arm participated in a Series C financing round of the Berlin fintech company worth $160 million, together with the Chinese tech giant Tencent. The now-planned sale of the N26 shares would probably not be a bad deal for Allianz X, despite the strong valuation discount. According to the Financial Times, the insurance subsidiary would at best triple its investment.

When asked by the newspaper, N26 did not want to comment in detail on the plans. One has no knowledge of active share sales by existing investors such as Allianz X. The company also did not want to comment on the valuation discount.

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