Digital bank N26 raises more than $100m to accelerate growth

Digital-only bank N26, which claims 100,000 customers in the Republic, has raised more than over $100 million (€91.6 million) as it said it has seen "unprecented growth" in sign-ups from older people over the last month.

The fundraise was an extension of its Series D founding round to more than $570 million. Overall, the digital challenger has raised almost $800 million to date at a $3.5 billion valuation. Backers include Insight Venture Partners, GIC, Tencent, Allianz X, Peter Thiel's Valar Ventures, Li Ka-Shing, Horizons Ventures, Earlybird Venture Capital, Greyhound Capital and Battery Ventures.

Founded by Valentin Stalf and Maximilian Tayenthal in February 2013, the Berlin-headquartered bank now has 5 million customers globally. It launched services in Ireland in December 2015.

Product development

The mobile bank said it intended to use the additional financing to help accelerate its product development and to grow its presence across its 24 European markets and the US. N26 is also in the process of applying for a fintech licence in Brazil.

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“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,” said Mr Stalf, the fintech’s chief executive.

N26 said that in the wake of the Covid-19 crisis it expects a long-term shift in digital banking adoption and has seen significant growth among those aged 65 years and over. This is a category that is seen as being most resistant to digital banking.