N26, a global mobile bank headquartered in Germany, has raised $300m in a new funding round led by US private equity firm Insight Venture Partners.
The capital raised in the Series D funding round has taken the value of N26 at $2.7bn. Singapore’s sovereign wealth fund GIC and other existing investors also took part in the investment round.
Insight Venture Partners Principal Harley Miller said: “It’s increasingly rare these days to come across such a massive industry which hasn’t experienced disruption by technology.
“N26 is the clear market leader in the European mobile banking industry; the company is ideally positioned to expand to the US market this year, and build a formidable global digital consumer brand.”
The mobile bank has now raised over $500m in funding. Its other investors include Tencent, Allianz X, Valar Ventures, Earlybird Venture Capital, Horizons Ventures, Redalpine Ventures and Greyhound Capital.
Currently, N26 has operations across 24 markets in Europe. The mobile bank boasts of over 2.3 million customers.
The banking startup plans to use the new proceeds to fund its global expansion, which will begin with the US launch of its mobile banking product in the first half of this year.
The company’s target is to have more than 100 million customers across the world in the coming years.
N26 CEO and co-founder Valentin Stalf said: “Around the world, millions of people still suffer from bad banking experiences and high fees. With Insight Venture Partners and GIC joining our renowned group of existing investors, N26 has the support of the best investors globally to disrupt one of the largest industries in the world.”
The mobile bank, which launched its first product in early 2015, claims to have processed over €20bn in transaction volume till date. Currently, its customers are said to hold more than €1bn in N26 accounts.
Founded in 2013, the company has a workforce of over 700 employees in three office locations in Berlin, New York and Barcelona. The company has a full European banking license and does not maintain any branch network.