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.
If you want to read more details about N26 and find the most important financial news of the day, download for free our companion app Born2Invest.
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.
(Featured image by Web Toffees via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in GRUNDERSZENE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [++ A2 Hosting Affiliates Review]
Something's brewing in the Right to Repair space. Lawmakers are increasingly law-making. DIY fixer upperers are increasingly fixer uppering. And,...
Why the Carbon Credit Market Is Not Working
The Carbon Brief analysis focused on 34 companies that alone used 38 million tons of carbon dioxide over the period...
Recrowd, Real Estate Lending Platform, Finally Gets European Authorization
Recrowd adopts a distinct approach for less sophisticated investors, limiting their investments to under €1,000 or 5% of their net...
Why the Amounts Invested in Belgian Fintech Companies Decreased
In 2023, the Belgian fintech sector has not witnessed any major fundraising events similar to those in previous years, such...
Bitcoin Soars 130% This Year: Will It Reach New All-Time Highs in 2024?
Bitcoin is currently trading within an ascending channel, maintaining support at $35,000, with an upward trajectory towards the psychological resistance...
Impact Investing2 weeks ago
ADM Launches Regenerative Agriculture Program in Brazil
Fintech4 days ago
What Fintech Trends Will Mark 2024 in Latin America
Markets2 weeks ago
Current Markets Rally Could Take Out the July 2023 and January 2022 Highs
Cannabis1 week ago
The Illegal Cannabis Market in Europe Reaches €11.4 Billion