Startup N26 Raises $100 Million to Grow Markets in Lockdown

(Bloomberg) -- N26 GmbH, the German mobile bank, has raised more than $100 million in an extension to its last funding round in order to acquire more customers, build out its existing markets, and grow in markets like Brazil where it is applying for a local fintech license.

The funding from internal investors comes after the bank applied for state wage support in Germany for about 150 employees out of 1,500.

N26 co-founder and Chief Financial Officer Maximilian Tayenthal said the bank would consider asking for additional state-aid support depending on the conditions, but that it's not relying on government funds.

“The last month has already seen many people embrace banking from home, move away from cash, and toward contactless payments and e-commerce,” Tayenthal said in an interview.

Read more: Germany's Passion for Cash Cools on Hygiene Fears in Virus Era

The Berlin-based startup's valuation remains unchanged at $3.5 billion. N26 raised $470 million in July from investors including Singapore's sovereign wealth fund GIC Pte and Insight Ventures Partners in a so-called Series D round.

“In all honesty, given the current market conditions we think the valuation is fair”, said Tayenthal. “We will look for a markup on valuation for our Series E round.”

N26 has collected close to $800 million to date, the company said in a statement, making the company one of Europe's highest valued non-listed fintech firms.

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