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N26 Closing UK Accounts; ADAY Raises USD$8.25m

N26

DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer and challenger brands. In today’s edition: N26 closing UK accounts; ADAY raises USD$8.25m; and Tandem set to finally announce big funding round. 

N26 closing UK accounts

Challenger bank N26 is closing accounts for UK customers on 15 April, blaming difficulties created by the Brexit process.

The bank, which had a significant marketing push after launch, only started offering current accounts in the UK after the EU referendum.

However, it said that the “timing and framework” of the Withdrawal Agreement made it impossible to continue.

With about 200,000 customers, it was one of the smaller operators in the UK.

Thomas Grosse, chief banking officer at N26, which has a European banking licence, said: “While we respect the political decision that has been taken, it means that N26 will be unable to serve our customers in the UK and will have to leave the market.”

Accounts will operate as normal until 15 April, by which time funds should be transferred. Following the closure of the company’s UK operations, the majority of its UK staff would move into new roles within the business, the bank said. It is bigger in Germany, where it has its Berlin headquarters, and has recently launched in the US.

ADAY raises USD$8.25m

ADAY, the direct-to-consumer clothing brand, has raised USD$8.25m in Series A funding from investors that include Downing Ventures, Venrex Investment Management, H&M CO:LAB, and Elizabeth Street Ventures. Founded by Meg He and Nina Faulhaber in 2015, ADAY has now raised a total of $10.3M in reported equity funding. 

The co-founders outlined that the funding would be used to inventory growth, marketing, offline expansion into retail stores, and growing their workforce. The business is also focusing on sustainability within its products, using factories which use 100% renewable energy, with the products containing post-consumable fabrics. ADAY also said that they are looking to expand their reach, through bringing in different products, alluding to the fact that at the moment they only do women’s wear. 

Last Autumn, the brand also moved into their new New York headquarters, opened its first ever permanent retail store in San Francisco, and launched a new range inspired by travel. 

Tandem set to finally announce big funding round

Tandem Bank is just a few weeks away from announcing a much anticipated funding round. 

The capital raise comes nearly a year after the first reports that it was taking place. In April 2019, the bank was tipped to be the next unicorn by the Financial Times, which reported Tandem was in the process of putting together a round that would top the £80m it raised in 2018.

Tandem Hong Kong

Yahoo Finance UK then reaffirmed this information, quoting a Tandem spokesperson who said it was poised to announce a “large” funding round in the last quarter of 2019. Finally on the horizon, it seems the figure raised is closer to £50 million, instead of the expected £100m, suggesting the neobank will come up short of a one billion valuation.

Having announced its Hong Kong expansion plans last year, the bank has already settled six full-time employees in Asia ahead of its pre-paid card launch. The bank is also understood to be discussing a major acquisition with one of Hong Kong’s digital banks.

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