N26, a Germany-based digital bank backed by internet group Tencent and insurance provider Allianz, raised $100m in a series D extension yesterday to bring the round to $570m.
Investors in the round were not named, with N26 noting only that they consisted of existing shareholders. The additional capital was raised at the company’s existing valuation of $3.5bn.
Tencent and Allianz X, an investment subsidiary of Allianz, contributed to a $170m second tranche in July 2019 together with Insight Venture Partners, GIC, Valar Ventures, Earlybird Venture Capital and Greyhound Capital.
The same group of investors had injected an initial $300m in series D funding in January 2019 at a valuation of $2.7bn.
Founded in 2013, N26 runs a mobile bank that customers access through a smartphone app which offers functionality such as real-time push notifications for transactions and automatic spending categorisation.
The additional funding will allow N26 to accelerate product development and double down on its footprint across 24 countries in Europe, the US and Brazil.
The company pulled out of the UK earlier this year following Brexit, citing concerns that a separate banking licence and systems to conform to local regulations would prove too costly.
Valentin Stalf, co-founder and CEO of N26, said: “The adoption of digital banking is accelerating as the world adjusts to a new normal. As one of the world’s leading challenger banks, N26 is front and centre in this shift, driving global innovation from our base in Europe.
“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.”
N26 has secured $785m in equity financing to date. Allianz X and Tencent previously co-led a $160m series C round in 2018.
The company’s backers also include Horizons Ventures, Battery Ventures, Redalpine Ventures and several members of the management board of e-commerce group Zalando.
– Image courtesy of N26
