Digital bank Starling Bank has raised £30 million in a new funding round, according to a company release. Merian Chrysalis Investment Company Limited is leading the round with an investment of £20 million. Starling’s existing investor, JTC, has topped off the round with £10 million.
Starling said the additional capital will help fuel its expansion into Europe as well as buidling out its existing banking service plus its B2B vertical.
Today, Starling reports approximately 930,000 accounts. The digital bank expects to surpass one million accounts “within weeks.”
To date, Starling has raised £263 million. Today’s round follows a £75 million funding round, led by Merian Global Investors in February 2019. Starling also received £100 million from the Capabilities and Innovation Fund.
Anne Boden, founder and chief executive of Starling Bank, said the bank has come a long way since Merian Global Investors’ first investment of £50 million earlier this year, adding new products and features and accelerating our rate of customer acquisition.
“This latest investment of £20 million from Merian Chrysalis will support Starling’s rapid growth and help us reach one million customers and £1 billion on deposit within weeks. It will also help us accelerate our global expansion, starting in Europe, so that even more people can benefit from the Starling app.”
Richard Watts, co-portfolio manager of Merian Chrysalis, said that Starling is proving to be a disruptive force in the banking industry.
“The new capital secured in this funding round will allow its management team to pursue its ambitious development programme and we’re delighted that we’re able to provide additional backing for this exciting business,” stated Watts.
The UK is a leading market for digital only banking fueled by an acceptance of innovation, forward looking regulation and Open Banking rules. Multiple UK based banks have crossed the Channel to operate in Continental Europe with several expanding beyond European borders.