UK success story, Starling Bank, raises £30m to fund expansion

UK Fintech startup Starling Bank has raised £30 million in a new funding round.

Leading the round was Merian Chrysalis Investment Company Limited, with an investment of £20 million. Starling’s existing investor, JTC, also invested a further £10 million.

This latest funding round will support increased investment in Starling’s financial retail and SME bank accounts. The startup will also invest in its B2B banking services and accelerate its expansion into Europe.

The expansion into Europe will build upon Starling’s notably rapid success across the UK. The plans underscore Starling’s ambitions to change the face of banking: since launching its app in May 2017, Starling has opened more than 930,000 accounts. In the next few weeks the startup is expects to hit one million customers.

The recent investment brings Starling’s total raised to a staggering £263 million and follows a £75 million funding round in February of this year. Starling Bank also received the award of £100 million from the Capabilities and Innovation Fund, also in February 2019.

Anne Boden, founder and chief executive of Starling Bank, said: “We’ve 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: “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.”