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N26 Secures $100M Extension Round

May 5, 2020

N26 has secured an extension to its Series D funding round to $570M, with a further increase of more than $100M coming from all of the company’s major investors solidifying their commitment to N26’s long term mission. To date, N26 has raised close to $800M, keeping its valuation at $3.5B. N26 GmbH remains one of the highest valued and most well-funded FinTech companies globally.

The funds will be used to accelerate N26’s product development and strengthen its footprint in its core markets, where the demand for mobile banking is higher than ever before.

“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. We are fully committed to spearheading digital innovation globally, creating world-class mobile banking solutions for all our customers around the world,” said Valentin Stalf, co-founder and CEO of N26.

The extension underscores the strong commitment from N26’s investor base to its long-term vision to build a mobile banking platform the world loves to use.

“In these turbulent times, digital banking is no longer a thing of the future, but a part of everyday reality. With 5 million users, and 250 thousand in the U.S., N26 is just at the beginning of its journey to transform the face of banking globally. 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,” said James Fitzgerald from Peter Thiel’s Valar Ventures.

With changes in consumer spending, banking habits and attitudes towards saving in the wake of the COVID-19 crisis, the company is expecting a long-term shift to digital banking adoption overall as people continue to do their banking digitally once the economy reopens.

“In the last month, we’ve seen many people moving away from cash towards contactless payments and e-commerce. We are also encouraged to see that many of our U.S. users are putting their salaries into their N26 accounts, signaling that N26 is serving as a primary banking solution for them,” said Nicolas Kopp, U.S. CEO.

A few product features that are resonating with the US market include our Apple Pay integration, the ability for our customers to get their pay check up to 2 days earlier with direct deposit, an ATM locator maps found directly in the app that show customers where to withdraw money without fees, and Spaces sub-accounts that help customers save for their goals.

Customers also enjoy cashback offers and exclusive discounts with music, fitness, meditation and lifestyle brands as part of the N26 perks program in the spirit of helping people live life to the fullest.

In the coming months, N26 will continue to invest in growing its presence across Europe and the US. In the US, the company launched last August and announced in February that it had acquired 250 thousand customers in a short 5 months.

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