Germany-based challenger bank N26 announced on Wednesday it secured $300 million through its Series D funding round, which was led by venture capital and private equity firm Insight Venture Partners, with participation from GIC, Singapore’s sovereign wealth fund, and several existing investors. The company reported the funds have brought its value up to $2.7 billion.
N26 was founded in 2013 with a mission redesigned banking to make it simple, fast and contemporary. The bank notably operates on a much lower cost base with lean organizational structures, minus green screen IT system and no expensive branch network.
“N26 passes on these cost benefits to its customers. N26 partners with the most innovative fintech and traditional financial companies to offer its customers best-in-class products such as TransferWise (foreign exchange), Raisin (savings), Clark and Allianz (insurance), auxmoney (credit) and others.”
N26 reported that to date it has raised more than $500 million from various investors including Tencent, Allianz X, Peter Thiel’s Valar Ventures, Li Ka-Shing’s Horizons Ventures, Earlybird Venture Capital, Redalpine Ventures, and Greyhound Capital. Valentin Stalf, CEO and co-founder of N26, stated:
“Around the world, millions of people still suffer from bad banking experiences and high fees. With Insight Venture Partners and GIC joining our renowned group of existing investors, N26 has the support of the best investors globally to disrupt one of the largest industries in the world.”
Harley Miller, Principal at Insight Venture Partners, added:
“It’s increasingly rare these days to come across such a massive industry which hasn’t experienced disruption by technology. N26 is the clear market leader in the European mobile banking industry; the company is ideally positioned to expand to the US market this year, and build a formidable global digital consumer brand.”
The investment round comes just a couple of months after N26 announced it was bringing its services to Denmark, Norway, Poland, and Sweden. Prior to that, the fintech officially launched in the UK. N26 recently stated that it is planning to expand not only in Europe but also in the U.S.
“[we are] launching in the US mid 2018, N26 will initially offer a checking account with full use of a card, money transfers, cash withdrawals, and features tailored to the US market, including an attractive customer reward program. In the long-term, N26 plans on building a Fintech hub with more services and becoming the one-stop shop for all its customers’ financial needs.”