UK-based digital banking group Starling Bank has reportedly secured £60 million from existing investors Merian Global Investors and Harry McPike’s JTC. The banking group has successfully raised £323 million and the latest funding follows two investment rounds of £105 million, which were led by Merian in 2019.
“The support of our existing investors represents a huge endorsement of our business strategy, as we continue to ramp up our growth. We’re constantly innovating and have big ambitions to turn Starling into a world-leading digital bank. We could not do this without the support of our 800 employees, who work so hard to provide a better banking experience for our customers, giving them more control over their finances. So I’m thrilled to be giving shares to them.”
Nick Williamson, Co-Manager of Merian Chrysalis, then added:
“Starling has continued to innovate and has already established itself as one of the most highly-regarded UK challenger banks. Its superior user experience is winning over retail and business customers and we believe 2020 is set to be a defining year for the business.”
According to TechCrunch, Starling revealed that its customers have opened 1.25 million accounts since its banking app launch in May 2017. The company also holds more than £1.25 billion in deposits. Recently, the banking group announced it was supercharging its bank accounts for businesses and sole traders with a range of new features, which includes unsecured loans of up to £250,000, an increase in its overdraft limits from £10,000 to £150,000, more competitive overdraft rates and a custom-built tax and financial management Toolkit. Starling also reported that its new unsecured term loan for business, offering from £5,000 to £250,000 over one to five years, will be available to limited companies that have been trading for at least 18 months on application directly to the bank. Boden at the time shared:
“Our loans and overdrafts will be particularly helpful for businesses that rely on working capital, but may have gaps in their cash flow across the month or for a period of months. We now have nearly 100,000 business accounts. Our improved lending facilities and our first premium accounts show that Starling really does mean business when it comes to business accounts.”
The digital bank stated that the new funds will support its expansion, which will include a European launch that has been delayed due to Brexit. Starling currently has 800 employees across offices in London, Southampton, Cardiff, and Dublin.