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German digital bank N26 raises $160M in funding round

German digital lender N26 GmbH said it raised $160 million in a series C funding round led by China's Tencent Holdings Ltd. and Allianz Group's technology investment unit, Allianz X.

The funding represents the largest equity financing round in the German financial technology industry to date and brings total funding raised by N26 to $215 million. The proceeds will be put toward N26's overall growth strategy and international expansion, especially into the U.S. and U.K. later in 2018. It will also support N26's product development for existing markets.

N26, which was launched in January 2015, said it has processed over €9 billion in transactions to date and expects to process more than €13 billion in 2018. The company has more than 850,000 customers and aims to reach more than 5 million by the end of 2020.