Mobile bank N26 secures $900m funding

N26 has announced a record-breaking $900 million in Series E funding.

The FinTech described the move, which makes the Berlin-based bank the highest valued FinTech in Germany, as the largest financing round to date for a digital bank in Europe.

The funding increases the company’s valuation to over $9 billion.

“This recent financing round solidifies the fact that retail banking as we know it has changed,” said Valentin Stalf, chief executive and co-founder, N26. “With our fresh capital, we are in pole position to become one of the biggest retail banks in Europe, all without a single branch.”

The round was led by New York-based tech investors Third Point Ventures and Coatue Management, and joined by Dragoneer Investment Group as well as N26’s existing investors.

N26 was also supported by Goldman Sachs Bank Europe who acted as the placement agent for the round.

The bank said that it would use the money to significantly expand its mobile banking offering, including adding 1,000 team members over the next few years, with a focus on product, technology, and cybersecurity.

“It is hugely important to us that we can share the success of N26 with our employees,” said Maximilian Tayenthal, co-chief executive and co-founder of N26. “Without them, we would not be the company we are today.”

In addition, N26 will expand its employee equity pool, while broadening Employee Stock Ownership Plan (ESOP) participation to all employees.

N26 has agreed with the German regulator to temporarily onboard a maximum of 50,000 - 70,000 customers per month.

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