GIC joins German mobile bank N26's US$300m funding round

SINGAPORE sovereign wealth fund GIC is taking part in German mobile bank N26's latest financing round of US$300 million (S$406.6 million), led by New York-based venture capital and private equity firm Insight Venture Partners.

Following the Series D funding round, which was also backed by several existing investors, the fintech startup will be valued at US$2.7 billion.

N26 said it will use the proceeds to drive global expansion, starting with the US launch of its mobile banking product in the first half of 2019.

Valentin Stalf, CEO and co-founder of N26, 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."

N26 has to date raised more than US$500 million from major global investors including Tencent, Allianz X, Li Ka-Shing's Horizons Ventures, Peter Thiel's Valar Ventures, Earlybird Venture Capital, Redalpine Ventures and Greyhound Capital.

N26 is aiming to build the first global mobile bank, targetting to reach over 100 million customers in coming years. It currently operates in 24 markets across Europe, and has more than 2.3 million customers.

Since launching its first product in January 2015, N26 has processed more than 20 billion euros (S$31.1 billion) in transaction volume. Customers currently hold over 1 billion euros in the mobile bank's accounts.