N26 Eyes Valuation Of $10B Or More In Funding Talks

German digital bank N26 is in fundraising talks that could value the FinTech between $8 billion and $11 billion, but likely around $10 billion, Bloomberg reported, citing “people familiar with the matter.”

The funding could be the last before an initial public offering (IPO), according to Bloomberg. News of a possible IPO has floated around for several months, although the company has yet to confirm anything. A previous report stated the FinTech aims for a 2023 IPO. An N26 spokesperson declined Bloomberg’s request for comment.

N26’s Series D funding round in May 2020, in which the company raised $800 million, valued N26 at $3.5 billion.

The FinTech has expanded its offerings in recent months. It made its entrance into the insurance business in April, partnering with Germany’s Simplesurance to offer mobile insurance products, the first being smartphone coverage. In March, N26 partnered with Dosh to grow its cash back rewards program, allowing N26 card users to earn cash back on purchases made at participating merchants.

The FinTech has also eyed expanding through an acquisition of a FinTech challenger in its space. CEO and Co-Founder Maximilian Tayenthal said in January that N26 was looking at a takeover of a company strong in a certain area, such as trading or know your customer (KYC).

N26 had 7 million users across the U.S. and Europe in January, according to Bloomberg. In its most recent financial year, the company reported a net loss of 110 million euros (about $130 million).

But N26 is also facing increased regulatory scrutiny. In May, Germany’s Federal Financial Supervisory Authority (BaFin) ordered the challenger bank to increase its anti-money laundering (AML) efforts. BaFin appointed a special commissioner to scrutinize the FinTech’s compliance and update the watchdog.