Allianz reportedly mulls sale of its shares in N26 at a discount
Allianz X, the venture capital arm of German financial services giant Allianz, is considering selling its stake in German challenger N26, according to the Financial Times.
Allianz X is reportedly considering selling its stake in N26
Allianz owns a 5% stake in the digital bank and is reportedly mulling the sale of its shares at a price point that would value N26 at around $3 billion, a drop of 68% from the $9 billion valuation it achieved when it raised $900 million in a funding round held in October 2021.
With the sale of its stake, Allianz would realise almost $160 million, FT reports, which based on public filings would still more than triple its investment from N26’s 2018 Series C round.
Despite its unicorn valuation, N26 is yet to turn a profit, reporting in October net losses of €172.4 million for FY 2021, up 14.4% from the previous year.
The company has also seen a number of senior leadership exits over the past year, with Thomas Grosse, its chief risk officer, quitting last month. Grosse’s departure followed chief financial officer (CFO) Jan Kemper leaving the firm at the start of this year, and COO Adrienne Gormley who left in April 2022.
The German challenger was also made to pay a fine of €4.25 million by German regulator BaFin for anti-money laundering failures in October 2021, and in May 2022, its Italian branch was banned by the Italian central bank from onboarding new customers over AML shortcomings.
