German challenger bank N26 has extended its Series D round with another $100m to strengthen its position in the days of COVID-19.
The neobank first announced the close of its Series D round in January 2019 at a $2.7bn valuation. That initial raise saw it add $300m to its war chest. The company then extended the investment round in July, putting an additional $170m into its coffers. That extra influx of capital also saw the company’s valuation jump to $3.5bn.
The valuation remained the same through this extension, which pushed the grand total raised in the Series D round to $570m.
No new investors were added to the round. The backers include Insight Venture Partners, GIC, Tencent, Allianz X, Peter Thiel’s Valar Ventures, Earlybird Venture Capital, and Greyhound Capital.
N26 will use the new money to grow its reach in Europe, the US and Brazil. It officially launched in the US in August 2019.
Valentin Stalf, co-founder and CEO of N26, also commented on the company’s decision to pull out of the UK because of Brexit uncertainty.
“Unfortunately, we were all surprised by the clearness of the election that happened around the new year with a fast Brexit,” Stalf told TechCrunch, saying that it would be too costly get a banking licence in the UK.
“For me, it was a super clear decision. I would have loved to stay in the UK,” Stalf said. “But there are more attractive markets out there like the US and Brazil.”
That being said, N26 was teased by fellow European challenger bank bunq for its decision to pull out of the UK, with the Dutch rival issuing a statement that it saw no reason to leave the UK just yet.
Copyright © 2020 FinTech Global