An early investor in Spotify, the digital music service, is in talks to lead a huge funding round being assembled by one of Europe’s biggest digital banks.

Sky News has learnt that Dragoneer Investment Group has been in discussions about injecting a substantial sum of money into N26, which is based in Germany.

The investment would value N26 at $10bn, making it one of the continent’s most valuable fintech companies.

It was unclear on Monday whether a deal had been signed or whether it could still falter, although one rival banking industry executive said they 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, Li Ka-shing’s Horizons Ventures and Insight Venture Partners.

Earlier that year, the company announced that it was pulling out of the UK market, citing Brexit-related issues relating to its European banking licence.

It was unclear, however, whether N26 had made significant inroads into a sector which has become fiercely competitive, with competition from the likes of Monzo, Revolut and Starling Bank.

Fuel supply crisis: ‘No plans to bring in army to do driving’ as minister urges people to stop ‘panic buying’

Fuel supply crisis live: Up to 90% of some brands ‘running dry’ – amid fears crisis could last until Christmas

Fuel supply crisis: Brexit ‘obviously a contributory factor’ to shortage of HGV drivers, shadow chancellor says

Revolut became Britain’s most valuable start-up earlier this year when it confirmed it was raising money from investors at a valuation of more than $30bn.

N26, which was founded in 2013, has more than seven million customers.

An N26 spokeswoman declined to comment, while Dragoneer did not respond to an emailed request for comment.

Related posts:

Ex-BT chair Rake quits Huawei UK board after a year Failure to tackle ‘hard edges’ of COVID-19 support, criticised by MPs Visa to hike fees for UK customers in post-Brexit move Visa to hike fees for UK customers in post-Brexit move Ministers to ban ‘rewards for failure’ in governance crackdown Why paltry sum raised for Treasury in 5G spectrum auction is actually good news Nando’s forced to close 50 restaurants due to supply chain disruptions Gap agrees tie-up to sell clothes via Next in the UK following store closures Friendship between France and UK, US and Australia ‘tarnished’ by AUKUS pact Rishi Sunak holds meetings with business leaders as Omicron causes COVID slowdown Former CBI chief Fairbairn in race to head Channel 4 Stocks and Bitcoin take fresh hits as cocktail of worries combine to hit markets