N26, the $3.5 billion German fintech backed by Peter Thiel, just won funding for a big expansion push

Berlin-based N26 said on Thursday it raised an additional $170 million in its latest funding round, driving up its valuation to $3.5 billion.

The firm said that investors, including Tencent Holdings and Allianz Group's digital investment unit, took part in the latest funding round.

Berlin-based N26 said on Thursday it raised an additional $170 million in its latest funding round, driving up its valuation to $3.5 billion, as the online bank looks to speed up expansion to markets outside Europe including the U.S.

The firm said it had extended its Series D funding round by $170 million to $470 million. To date, N26 said it has raised more than $670 million.

The firm said that investors, including Tencent Holdings and Allianz Group's digital investment unit, took part in the latest funding round.

N26, which counts Chinese billionaire Li Ka-shing and Silicon Valley investor Peter Thiel among its backers, is competing with traditional branch-based retail banks by offering a line of mobile banking services that customers can use entirely from their smartphones.

The online bank has more than 2.5 million customers. It said it will use the additional money to accelerate its push into Europe, the United States and Brazil.