Berlin-headquartered digital bank N26 today announced an extension of its Series D funding round to $570M, with a further increase of more than $100M, coming from the company’s main investors.
To date, N26 has raised close to $800M, keeping its valuation at $3.5B.
N26 was founded in 2013 and launched the initial product in early 2015. Today, the firm has more than 5 million customers in 25 markets. It employs more than 1.500 employees across five office locations: Berlin, New York, Barcelona, Vienna, and São Paulo.
N26 says that the funds will be used to accelerate N26’s product development and strengthen its footprint in its core markets, where the demand for mobile banking is higher than ever before.
The extension shows a strong commitment of N26’s investor base to its long-term vision of building a bank the world loves to use, the mobile banknotes.
Covid-19 impact
With changes in consumer spending, banking habits, and attitudes towards saving in light of the COVID19 crisis, the company expects a long-term shift in digital banking adoption overall.
“With banking from home now more important than ever, we want to make sure that everyone can open a bank account in minutes to explore the freedom and safety of mobile banking,” says Valentin Stalf, Co-Founder and CEO of N26.
“In these turbulent times, digital banking is no longer a thing of the future, but a part of everyday reality,” James Fitzgerald at New York-based venture capital fund, Valar Ventures, adds.
Maximilian Tayenthal, Co-Founder of the firm, says that N26 has already seen many people embrace banking from home, move away from cash, and towards contactless Payments and e-commerce over the past few months.
“We’ve even seen unprecedented growth in online spending amongst customers above the age of 65 - an important sign that digital banking is becoming increasingly relevant for everyone,” he concludes.
N26 will continue to invest in growing its presence across its 24 European markets and the US in the near future. The firm is currently in the process of applying for a local Fintech license in Brazil.
With a full European banking license, N26 is available on Android, iOS, and desktop. Investors include Insight Venture Partners, GIC, Tencent, Allianz X, Peter Thiel’s Valar Ventures, Li Ka-Shing’s Horizons Ventures, Earlybird Venture Capital, Greyhound Capital, Battery Ventures, in addition to members of the Zalando management board, and Redalpine Ventures.
