UK-based digital banking group Starling Bank announced this week it secured a £50 million investment from Goldman Sachs Growth Equity. According to Starling Bank, the investment is an extension of the oversubscribed £272 million Series D funding round announced in March 2021, which valued it in excess of £1.1 billion pre-money valuation. This takes the total raised in the Series D round to £322 million.
Founded in 2014, Starling is a fully licensed bank fully covered up to £85,000 by the Financial Services Compensation Scheme. It offers various accounts – personal, joint, business, euro, and connected – each of which can be managed from your mobile or desktop. Features include instant payment notifications, insights into your spending habits, an in-app card lock, a flexible overdraft, and 24/7 customer support. The company also connected to the Current Account Switch Guarantee, so switching couldn’t be easier.
“It only takes a few taps and we’ll manage the rest for you within seven working days. Starling further revealed it now has more than two million current accounts, including 350,000 business accounts. Its deposit base has increased from approximately £1 billion just over a year ago, to now more than £6 billion.”
While sharing more details about the investment, Anne Boden, Founder and CEO of Starling Bank, stated:
“Securing the support of another global financial heavyweight demonstrates the strength of demand from investors and represents yet another vote of confidence in Starling. Goldman Sachs will bring valuable insight as we continue with the expansion of lending in the UK, as well as our European expansion and anticipated M&A.”
Starling Bank then added that the new funding will support its continued growth. The transaction remains subject to regulatory approval.