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October 18, 2021updated 20 Oct 2021 12:32pm

Online bank N26 secures $900m funding at $9bn valuation

German online bank N26 has raised $900m in a Series E funding round at a valuation of more than $9bn.

The round was co-led by tech investors Third Point Ventures and Coatue Management.

Dragoneer Investment Group also joined the round along with N26’s existing investors.

Goldman Sachs Bank Europe acted as the placement agent for the round.

The latest funding has made N26, which was founded in 2013, one of the highest valued fintech firms in Europe.

N26 will use the funds to expand its mobile banking offering. It also plans to onboard 1,000 new team members in the coming years, with a focus on the areas of product, technology, and cybersecurity.

N26 CEO and co-founder Valentin Stalf said: “This recent financing round solidifies the fact that retail banking as we know it has changed. With our fresh capital, we are in pole position to become one of the biggest retail banks in Europe, all without a single branch.”

Additionally, the mobile lender plans to expand its employee equity pool and broaden the Employee Stock Ownership Plan (ESOP) participation to 100% of employees.

Third Point Ventures partner Heath Terry said: “N26 has established itself as a leading tech-forward global digital bank. We are excited to provide capital and strategic support to accelerate N26’s work to make digital retail banking accessible to millions.”

Earlier this year, N26 was fined by Germany’s financial regulator (BaFin) for anti-money laundering (AML) related issues.

BaFin had imposed a fine of approximately $5m in June this year.

Notably, in May this year, BaFin ordered the neobank to address anti-money laundering lapses by implementing appropriate internal controls and safeguards.