China’s Tencent Holdings and Allianz X, a digital investment unit of Allianz Group, have co-led a $160 million Series C funding round in Berlin-based retail banking startup N26, according to a company announcement.
The financing marks the largest non-IPO equity financing round raised in the fintech industry in Germany and one of the largest in Europe, N26 said.
The German company plans to use the funding for its growth and international expansion, particularly into the US and UK later this year. It will also use proceeds to support product development in its existing markets.
With the latest funding, N26 has now raised a total of $215 million from investors including Li Ka-Shing’s Horizons Ventures, Valar Ventures, members of the Zalando Management Team, and Earlybird Venture Capital.
N26 was founded in 2013 by Valentin Stalf, now its CEO, and Maximilian Tayenthal, its CFO. The startup launched its initial product in early 2015 and now claims to have acquired more than 850,000 customers. It now aims to reach more than 5 million customers by the end of 2020.
“We see the increasing demand of digital banking products and services in the European markets and we are delighted to be a strategic investor of N26 to build a long-term partnership and participate in their growth,” said Lin Haifeng, managing partner, Tencent Investment.