N26 raised US$160 million in a Series C financing under the co-lead of Allianz X, the digital investment unit of the Allianz Group, and Tencent Holdings Ltd., a leading Chinese provider of value-added internet services. The operation represents the largest equity financing (non-IPO) of the fintech sector to date in Germany, as well as one of the largest in Europe, and will be used to accelerate N26's global growth strategy and product vision. To date, total funds raised are US$215 million.
Since its launch in January 2015, N26 has acquired more than 850 customers, making it one of Europe's fastest growing banks. The goal is to reach the quota of 5 million customers by 2020. N26 has so far handled a transaction volume of over €9 billion, with an expected volume of more than €13 billion in 2018 alone.
“We are delighted to have Allianz and Tencent lead our Series C financing. Not only are they the driving force behind their respective industries, but they understand the power technology and design have to subvert entire industries,” he says. Valentin Stalf, CEO and co-founder of N26.
Allianz X is the digital investment unit of the Allianz Group. Tencent is the market leader in social media, gaming, e-commerce and mobile payments in China. With its flagship product, the communication platform WeChat (known in China as Weixin), which has one billion monthly active users, Tencent has become one of the most valuable technology companies by market capitalization in the world.
The funding will be directed towards N26's overall growth strategy and international expansion, particularly in the US and UK, within the current year. It will also serve to support product development in existing markets.
"N26 is clearly a forerunner of mobile banking” says Dr. Nazim Cetin, CEO of Allianz X. “N26's banking platform is modernizing traditional financial services business models, essentially delivering a better customer experience.”
Dr. Lin Haifeng, Managing Partner, Tencent Investment of Tencent Holdings Limited, says, “As a pioneer in the mobile banking industry in Europe, N26 is committed to offering its customers a more convenient and beneficial banking experience. As we see growing demand for digital banking products and services in European markets, we are delighted to be a strategic investor in N26, with whom we want to build a long-term partnership to participate in their growth.”
N26's mission, as stated in the company note, “is to build a bank that everyone loves. The Mobile Bank offers real-time and personalized banking services to all customers who prefer a simple, transparent, paperless and no hidden fees digital experience”.
