One of the first investors in Spotify, the digital music service, is in talks to lead a huge fundraising round hosted by one of Europe’s largest digital banks.
Sky News has learned that Dragoneer Investment Group is in discussions to inject a substantial sum of money into N26, which is based in Germany.
The investment would value N26 at $ 10 billion, making it one of the most valuable fintech companies on the continent.
It was not clear on Monday whether a deal had been signed or whether it could still fail, although a rival banking industry executive said he expected the deal to happen.
In May 2020, N26 announced an extension of its Series D funding round, with its backers including a Singaporean sovereign wealth fund, Horizons Ventures of Li Ka-shing and Insight Venture Partners.
Earlier that year, the company announced it was pulling out of the UK market, citing Brexit issues related to its European banking license.
However, it was not clear whether N26 had made significant inroads in an industry that has become fiercely competitive, with competition from Monzo, Revolut and Starling Bank.
Revolution has become Britain’s most valued start-up earlier this year, when she confirmed she was raising funds from investors at a valuation of over $ 30 billion.
N26, which was founded in 2013, has over seven million customers.
A spokeswoman for N26 declined to comment, while Dragoneer did not respond to an email request for comment.