N26, a Germany based Fintech, says it plans another funding round before a possible initial public offering (IPO) in 2023 at the earliest, according to a report. As well, the digital bank is predicting break even at some point in 2021 as it seeks to turn the corner in its growing operations.
“If we list on the stock exchange in three years that would be fast.”
Like most promising early-stage companies, management seeks to remain private as long as possible due to the ocean of private capital and the onerous cost of going public including the expense of ongoing reporting requirements.
In August, N26 shared some data points on its expansion into the US market – a tough entry that is highly fragmented and full of both incumbent and digital competitors. After one year of operation, N26 reported over 500,000 customers in the US. N26 has partnered with Axos Bank to offer regulated services in America.
While the US expansion may be on track, at the beginning of 2020, N26 made the decision to exit the UK – the market where the digital banking transformation started. The bank is focusing on its core markets of Germany, as well as France, Spain, Italy and expects to launch in Brazi in the near future.
Founded in 2013, N26 now claims over 5 million customers. The company has raised $370 million in growth capital – most recently at a valuation of $3.6 billion