N26 has announced an extension of its Series D funding round to $570 million, with more than $100 million coming from all the company’s major investors.

To date, the Berlin-based digital bank has raised close to $800 million, keeping its valuation at $3.5 billion. Investors include Insight Venture Partners, GIC, Tencent, Allianz X, Valar Ventures, Horizons Ventures, Earlybird Venture Capital, Greyhound Capital and Battery Ventures.

The funds will be used to accelerate N26’s product development and strengthen its footprint in core markets.

“The adoption of digital banking is accelerating as the world adjusts to a new
normal, commented co-founder and chief executive Valentin Stalf. "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."

A statement from the company explained that product teams have responded to Coronavirus-driven shifts in demand by accelerating new features to market, "and will continue to build still more innovative products to help people bank seamlessly and safely on their mobile phones, no matter where they are,” added co-founder Maximilian Tayenthal.

He highlighted N26’s new instant banking feature that allows customers to add a digital version of a new card to their mobile wallet giving them immediate access to contactless payments, even without a physical card.

In the coming months, N26 stated that it will continue to invest in growing its presence across its 24 European markets and the US. The mobile bank is also laying the groundwork for its next market entry, and is in the process of applying for a local FinTech license in Brazil.

Stalf and Tayenthal founded N26 in 2013 and launched the initial product in early 2015. Today, it has more than five million customers in Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland and the US.

The company abruptly pulled out of the UK earlier this year, explaining that following the UK’s departure from the EU at the end of January, it would no longer be able to operate in the country under its existing European banking licence.

It employs more than 1,500 employees across five offices in Berlin, New York, Barcelona, Vienna and São Paulo.

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