Thursday 10 January 2019 12:21 pm

Revolut rival digital bank N26 lands $300m funding round, becoming Europe's most valuable fintech startup

Digital banking startup N26 has closed the biggest funding round in European fintech in recent years, valuing the Monzo and Revolut challenger at $2.7bn (£2.1bn).

The Berlin-based fintech, which offers a current account and debit card through its mobile banking app, has raised $300m in a series D round led by US venture capital firm Insight Venture Partners.

Singapore's sovereign wealth fund GIC and other existing investors also participated. It brings N26's total funding to date to more than $500m, with previous backers also including Tencent, Allianz X and entrepreneur Peter Thiel's Valar Ventures.

The round beats out competitor Revolut's $250m fundraise in April as the largest closed by a European fintech firm in the age of digital banking.

Read more: London's tech startups rake in almost double their European counterparts

Operating across 24 countries in Europe, N26 said it has more than tripled its customer base in 12 months to reach over 2.3m registered users. The digital bank launched in the UK in October last year.

As is the case with its rivals, the startup is targeting a US launch, promised to go live in the first half of 2019.

Chief executive Valentin Stalf said the banking challenger hopes to use the expertise of its newest investors and the proceeds of the funding round "to disrupt one of the largest industries in the world".