N26 in the Brazilian mega-metropolis of São Paulo Getty Images / Rebeca Mello, andDraw, Thomas Trutschel
The Berlin fintech N26 only really got off the ground in Brazil at the beginning of the year – the only market outside the European Union in which the German startup is still active. The neobank surprisingly withdrew from the USA in 2021 after two unsuccessful years.
But there have already been layoffs at the Brazilian branch: Around 20 people had to leave the Brazilian N26 subsidiary at the beginning of the month. According to an internal list available from the start-up scene, software developers, designers and analysts have been fired. The layoffs are said to have affected around 15 percent of the workforce in the country.
In itself, not too much excitement in times when the funding climate is changing and many startups are parting with part of their workforce. But the future of the German fintech in the largest country in Latin America seems uncertain – this is made clear not least by an unusual funding structure. Because now N26 Brazil is on its own with fundraising, without any help from the Berlin headquarters.
Four years delay because of Covid
From the outset, the neobank had a rather bumpy start in Brazil. The start-up announced its forthcoming launch there at the beginning of 2019. But then nothing happened for a very long time. The company only rolled out its offer for all Brazilian users at the beginning of 2023.