The smartphone bank’s backers include Peter Thiel, Singapore’s GIC and Chinese tech giant Tencent

N26 just saw its valuation explode. The kind of valuations European fintechs are getting these days is calling into question the belief that Silicon Valley alone is the birthplace of the most promising startups.

The recent raising of $170 million by challenger German bank N26 Gmbh gives it a valuation of $3.5 billion. That valuation puts the company in the top echelons of European fintechs.

The funding brings the total of funds raised by the firm to $470 million.

N26 and Its Marquee backers

The company raised the money from the who’s-who of investors such as Singapore’s sovereign wealth fund GIC,  Venture Partners, Peter Thiel’s Valar Ventures and China’s tech giant Tencent.

Branch-less and digital bank N26 has made impressive strides in its business. With a tally of 3.5 million customers in 24 countries, the bank offers an app-based debit card and checking account. Its 1,300 employees are located all over the world.

The firm will use the funding for a global expansion.

European fintechs at record valuations

UK-based digital bank Revolut claims a valuation of $1.7 billion, while payment fintechs Klarna Bank AB and TransferWise have valuations of $3.5 billion each.