8.6 C
New York
Thursday, May 23, 2024
Home Challanger banks Starling Bank raises £40 million from existing investors

Starling Bank raises £40 million from existing investors

Starling Bank is a UK-based challenger bank founded by Anne Boden and it has just raised another £40 million in the latest funding round from its existing investors.

The round was led by existing backers Harry McPike’s JTC and Merian Chrysalis Investment Company Limited, making the raised funding in 2020 to a total of £100 million (Starling has raised £60 million this February).

Read also: Challenger banks do better with account opening experience

At this moment, Starling has more than 1.4 million active accounts, including 155,000 business accounts. The deposit base has doubled in the last six months and it now holds more than £2.4 billion in deposits.

This fresh capital will go towards the company-wide growth strategy, and its “much-needed support to small business customers who have been hit by the coronavirus emergency,” a bank spokesperson told TechCrunch.

“This additional funding from our existing investors demonstrates their commitment both to Starling and to our small business and personal customers who need our support now more than ever,” said CEO Anne Boden in a statement confirming the raise.

Starling claims to be the fastest-growing bank for small and medium-sized enterprises (SMEs) in Europe. At this point it holds a 2.6% share of the UK’s SME banking market. It has almost £500 million of SME lending on its balance sheet, with further commitments raising the total to almost £1 billion.

But the COVID crisis is clearly disrupting long-term growth plans all over the market. Anne Boden told Wired this week that though it was planning to reach profitability in 2020, this timeline has been pushed back to 2021, with a consequent delay to any initial public offering (IPO) which was planned for 2022.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

NEW Revolut UK CEO to make Conference Debut at MoneyLIVE Summit

MoneyLIVE has today announced that Revolut’s newly appointed UK CEO will be making her conference debut at MoneyLIVE Summit 2024, which is...

2024’s Financial Innovators: A New Era of Banking Startups 

In the wake of the COVID-19 pandemic, our world witnessed an unprecedented shift towards digitalization. The banking industry, in particular, has been...

C-suite Banking and Payments Leaders From Across Europe Set to Meet at London’s MoneyLIVE Summit in March

On the 6-7 March 2024 MoneyLIVE Summit will return to London’s QEII Centre to unite over 1000 banking and payments leaders from...

The Evolution of Digital Wallets: A Shift from Physical Cards by 2030

By 2030, we can expect digital wallets to become the preferred payment instrument, offering a myriad of non-payment-related services for consumers.