The company intends to use the funding to strengthen its work force with 1,000 new members, and focus on product, technology and cybersecurity
N26 is a mobile banking platform. (Credit: StockSnap from Pixabay.)
Germany-based mobile banking platform N26 has secured $900m in a Series E funding round, which raised the company’s valuation to more than $9bn.
New York-based investors Third Point Ventures and Coatue Management led the funding round.
New investor Dragoneer Investment joined the investment round alongside existing investors.
Also, Goldman Sachs Bank Europe supported the company, serving as a placement agent for the Series E financing round.
Last year, N26 extended its Series D funding round to $570m by securing an additional investment of more than $100m from all of its major investors.
With the new funding, it becomes the highest valued fintech in Germany, and one of the top 20 fintechs in the world, said the German neobank.
Third Point Ventures partner Heath Terry said: “N26 has established itself as a leading tech-forward global fintech organization.
“We are excited to provide capital and strategic support to accelerate N26’s work to deliver their world-class mobile banking experience to millions.”
N26 intends to use the funding to expand its mobile banking offering, with a focus on the product, technology and cybersecurity areas.
The company plans to scale its global workforce by adding 1,000 new members to its team in few years.
Also, it will expand its employee equity pool, while widening its Employee Stock Ownership Plan (ESOP) participation to 100%, as part of its ESOP programmes in Europe.
N26 CEO and co-founder Valentin Stalf said: “This recent financing round solidifies the fact that retail banking as we know it has changed.
“With our fresh capital, we are in prime position to become one of the biggest retail banks in Europe, all without a single branch.”
N26 co-CEO and co-founder Maximilian Tayenthal said: “It is hugely important to us that we can share the success of N26 with our employees. Without them, we would not be the company we are today.”
Established in 2013, N26 is a mobile banking platform with operations across Amsterdam, Berlin, Barcelona, Belgrade, Madrid, Milan, Paris, Vienna, New York and São Paulo.
The company’s US subsidiary N26 Inc is not a bank, but a fintech that delivers banking services offered by Axos Bank, an FDIC-insured depository institution.