N26 has raised more than $900 million in a Series E funding round that values the German digital bank at over $9 billion.
Third Point Ventures and Coatue Management led the round, which was joined by Dragoneer Investment Group as well as N26’s existing investors.
Launched in Germany and Austria in January 2015, N26 began as a current account with a Mastercard. It has more than seven million customers in 25 countries and is on track to process over $90 billion in transaction volume in 2021.
The new funding round gives N26 a market cap roughly equivalent to Germany's second largest commercial bank Commerzbank.
Valentin Stalf, CEO, N26, says: “This recent financing round solidifies the fact that retail banking as we know it has changed. With our fresh capital, we are in prime position to become one of the biggest retail banks in Europe, all without a single branch.”
The funding will be used to build out its mobile banking product and to hire 1000 new employees in areas such as product, technology and cybersecurity.
In addition, N26 says it will significantly expand its employee equity pool, while broadening Employee Stock Ownership Plan participation to 100% of employees.
The firm has previously had tense relations with staffers, who last year moved to set up a 'Works Council' amidst claims that trust and confidence in the digital bank's management were at an "all time low".
Maximilian Tayenthal, co-CEO now says: “It is hugely important to us that we can share the success of N26 with our employees. Without them, we would not be the company we are today.”