Number26, a German mobile-based app only banking startup has raised USD 40 mn in its Series B round driven by Horizon Ventures founded by one of Asia’s richest men, Li Ka-shing. The startup has also garnered financial support from some new investors including Battery Ventures, Robert Gentz, David Schneider, and Rubin Ritter. The list of existing investors includes the famous German-American entrepreneur, venture capitalist, hedge fund manager and co-founder of PayPal, Peter Thiel (through his venture capital firm Valar Ventures), Earlybird Ventures, and Redalpine Ventures.
Number26, founded in 2013 offers mobile-only bank account which gives real-time notifications of the expenditure by the customer. The app also allows users to make transfers within the banking app using TransferWise. The account also allows individual customisation of overdraft facilities with a limit of up to €1000 for new customers at the rate of interest ranging between 8 and 9% pa. According to the company, individual customisation facilitates control over spending with regular warning messages issued by the app when the balance appears low.
The product which was launched in Germany and Austria has now been expanded to other geographical areas, especially EU including Ireland, Spain, France, Greece, Slovakia, and Italy. The popularity of the concept has been tremendous with the company boasting a customer base of 200,000 since launching in January 2015.
The funds raised will be utilised towards expanding geographical outreach and the integration of new products like savings, investment and credit to create a complete FinTech platform.
According to Valentin Stalf, founder and CEO of Number26, “This financing round brings together some of the world’s leading investors. They provide the substantial financial resources and networks to accelerate our transformation of the banking landscape over the coming years,” explains . Even given our success to date, we believe we are only at the beginning of our journey to bring better mobile banking to millions of customers across Europe, transparently and at much fairer prices.”
According to company blog, the company aims to disrupt the traditional banking model by facilitating voice-based banking operations. The company has plans to integrate Apple Siri in the Number26 banking experience.