Starling Bank raises £30m to fund expansion plans
Starling Bank, the UK digital bank, has raised £30m in a new funding round. Merian Chrysalis Investment Company Limited is leading the round with an investment of £20m, while Starling’s existing investor, JTC, has added a further £10m.
The funding will support increased investment in Starling’s financial retail and SME bank accounts as well as its B2B banking services and enable it to accelerate its expansion into Europe.
The expansion will build on Starling’s rapid success to date in the UK and underscores its ambitions to change the face of banking: since launching its app in May 2017, Starling has opened 930,000 accounts. It expects to hit one million customers within weeks.
Today’s investment brings the total raised by Starling to £263m and follows a £75m funding round, led by Merian Global Investors in February 2019, as well as the award to Starling of £100m from the Capabilities and Innovation Fund, also in February. Starling is using the CIF award to build out its SME account.
Anne Boden, founder and chief executive of Starling Bank, said: “We’ve come a long way since Merian Global Investors’ first investment of £50m earlier this year, adding new products and features and accelerating our rate of customer acquisition.
“This latest investment of £20m from Merian Chrysalis will support Starling’s rapid growth and help us reach one million customers and £1bn 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: “Starling is already proving to be a disruptive force in the banking industry, with its efficient, user-friendly platform gaining popularity among digitally-savvy consumers and businesses. 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.”