N26 extended its Series D funding round to $570M, the company is now valued at $3.5B.
No new investors participated in the round. James Fitzgerald from VC Valar Ventures said: “This funding extension will help an already well-funded and successful business take the lead at a time when people are embracing digital banking more than ever.”
The challenger bank intends to use the amount to accelerate product development and strengthen its presence in its core markets, where demand for mobile banking has increased in recent months.
N26 co-founder Maximilian Tayenthal said that the last month has already seen many people embrace banking from home, move away from cash and towards contactless payments and e-commerce.
According to Tayenthal, N26 has also seen unprecedented growth in online spending amongst customers above the age of 65 – an important sign that digital banking has become increasingly relevant for everyone.
With differences in consumer spending, banking habits, and attitudes towards saving in the post COVID19 crisis, the digital bank expects a longlasting shift in the banking environment overall.
“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 center in this shift, driving global innovation from our base in Europe,” said Valentin Stalf, co-founder and CEO of N26.
“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,” he added.
N26 aims to invest in growing its potential across its 24 European markets and the US in the near future. The company is in the process of applying for a local FinTech license in Brazil.
However, they have left the UK market citing Brexit to be the main reason.