German challenger N26 has raised over $100m from existing investors after extending its Series D funding round to $570m.
The extra $100m came from existing investors including Insight Venture Partners, GIC, Tencent, Allianz X and Valar Ventures. In addition, the extension keeps N26’s total valuation at $3.5bn.
Valentin Stalf, CEO and co-founder of N26, said: “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.”
In January 2019, N26 initially raised $300m for its Series D Round before adding $170m to this figure in July.
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 announcement comes as Covid-19 has caused uncertainty for the banking industry. It has already emerged that challengers including Monzo, Revolut and Starling have furloughed staff and made cuts to senior management salaries.
N26 leaves UK market
Earlier this year, the start-up hit the headlines when it decided to leave the UK market, giving its customers three months to make other arrangements.
N26 blamed Brexit for its decision to leave despite only launching in the UK in 2018 -after the EU referendum.
At the time of the UK launch, N26 had more than 1.5 million customers across 17 European markets.
During its short spell in the UK, the challenger added 200,000 customers following an extensive marketing campaign.
N26 is not the first international digital bank to launch in the UK and beat a hasty retreat. For example, Germany-based Fidor launched in the UK in 2015. As with N26, Fidor had ambitions to disrupt the UK market.
But in July last year Fidor said it was exiting the UK market citing what it termed ‘uncertainties’ in the UK market. Fidor gave its UK customers three months to make alternative arrangements.