Allianz X, the digital investment unit of Allianz Group, and Chinese tech giant Tencent Holdings have co-led a new funding round for N26, the mobile-first bank based in Germany. The $160m (£114m) Series C round represents the largest equity financing round in the German fintech industry to date, and one of the largest in Europe.

N26 launched in January 2015 and has acquired more than 850,000 customers to date, making it one of Europes fastest growing banks. The company has set its sights on reaching more than 5m customers by the end of 2020, and will use the new investment to accelerate its global growth strategy and product vision.

“We are very pleased to have Allianz X and Tencent leading our Series C,” said Valentin Stalf, CEO and co-founder of N26. “Not only are they powerhouses in their respective fields of financial and internet services, but they also understand the power of intelligent technology and design to disrupt industries.”

N26 currently focuses on retail banking, with over €9bn in transactions processed to date, and a projected volume of more than €13bn expected in 2018. In addition to international expansion, particularly into the US and UK later this year, the new investment will support product development, with a focus on integrating AI into the banks platforms.

“As a pioneer of the mobile banking industry in Europe, N26 is committed to offering their customers a more convenient and cost-efficient banking experience,” said Lin Haifeng, managing partner of Tencent Investment at Tencent Holdings. “We see the increasing demand of digital banking products and services in the European markets and we are delighted to be a strategic investor of N26 to build a long-term partnership and participate in their growth.”