German fintech starlet N26 has upped its valuation to $3.5bn (£2.8bn), after extending its series D funding round to raise another $160m.
The digital banking app has now raised a total of $470m in the round, which included investors such as Insight Venture Partners, Singapore’s sovereign wealth fund GIC, Tencent, Allianz X, Peter Thiel’s Valar Ventures, Earlybird Venture Capital, and Greyhound Capital. To date, N26 has raised more than $670m.
“This will allow us to accelerate our global expansion. The further increase in valuation is a great testament to the company’s development over the last months,” said N26 co-founder Maximilian Tayenthal.
N26 said it is now Germany's most valuable startup, and is second among European fintechs after British stalwart Transferwise.
The startup said it will use the funds to accelerate its expansion in Europe and the US, with plans to launch in Brazil soon.
The firm launched across the pond only last week, and now has more than 1,300 employees globally across offices in London, Berlin, Barcelona, New York, Vienna and Sao Paolo.
N26 recently began a widespread marketing campaign across the Tube network in London, and this week relaunched its premium offering N26 You to its 3.5m users.
The startup made headlines earlier this year when it was mandated by the German banking regulator to step up its anti-money laundering policies, after a probe found the fintech firm was deficient in several areas.
“The notion that the best consumer startups are all born in Silicon Valley is increasingly outdated," said James Fitzgerald, general partner at Valar Ventures based in NYC.
"N26 is a prime example of digital innovation moving in the opposite direction, from Europe to the US and beyond. We see customers all around the world waiting for banking to change and are thankful to support N26 on their journey to transform retail banking globally."