GIC-backed German fintech N26 valued at more than US$9b after fundraising

[FRANKFURT] The German online bank N26 said on Monday that it had completed a US$900 million fundraising round that valued the company at more than US$9 billion.

It is good news for the bank, which in recent months has come under fire for breaches related to money laundering controls and prevention.

The latest financing makes N26, founded in 2013, one of Europe's most valuable fintechs, behind giants Klarna and Revolut but ahead of other neobanks such as Britain's Starling and Monzo. N26 is Germany's most valuable fintech.

The latest funding came from Third Point Ventures, Coatue Management, Dragoneer Investment Group and existing N26 investors, N26 said.

N26's smartphone banking app offers a scalable, low-cost model that has already attracted backing from, among others, insurer Allianz, Singapore's sovereign wealth fund GIC, Chinese Internet giant Tencent, venture capital firm Earlybird and Silicon Valley investor Peter Thiel.

N26 said it has more than 7 million customers in 25 countries.

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The bank said it would use the additional funding to expand its mobile offering and hire 1,000 new employees in the coming years.

REUTERS