German digital bank N26 today announced it has raised an additional $100 million in its Series D funding round. Overall, the highest valued Fintech firm to date has raised almost $800 million at a valuation of $3.5 billion.
The Berlin-headquartered bank, founded in February 2013 by Valentin Stalf and Maximilian Tayenthal, now has 5 million customers worldwide. The investment, backed by global investors such as Peter Thiel’s Valar Ventures, Li Ka-Shing, Battery Ventures, Greyhound Capital, Earlybird Venture Capital and Horizons Ventures.
In the announcement N26 notes the funds will be used to facilitate the growth of N26’s product and expand its presence in its core markets, where mobile banking demand is higher than ever before.
With shifts in consumer banking preferences and banking preferences in the face of the COVID19 turmoil, the mobile bank expects a long-term shift in overall acceptance of digital banking.
“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”
N26 is one of the online-only banks which has grown in Europe, drawing millions of users despite any physical branches. The mobile bank continues to aim to invest in the near future in expanding its presence across its 24 European and US markets.
The Covid-19 has a significant effect on the mobile payment industry as customers and companies have been forced to change their spending habits dramatically and the banking sector is struggling to retain cash accessibility while keeping clients safe.
Large numbers of companies and people around the world have stopped using banknotes in the fear that the handling of physical cash handled by different people may be a source of coronavirus spread. This has encouraged the adoption of electronic payments in many countries. ‘