8.6 C
New York
Sunday, February 5, 2023
Home Challanger banks Starling Bank to be valued at $1.5bn as it is set to...

Starling Bank to be valued at $1.5bn as it is set to raise £200m

US investor Fidelity manages trillions of dollars in assets and is negotiating a £200m fundraising for Starling, Sky News reported.

Starling Bank has achieved break-even last October and with expectations to be monthly profitable on an operating profit basis.

Read also: N26 hits 7 million customer mark

After that JPMorgan and Lloyds Banking Group expressed interest in an acquisition of the digital bank. However, CEO Anne Boden decided to go for an IPO.

“Big banks taking interest in Starling is not new,” Boden told Financial News last month. “I’ve always said that I didn’t do this to sell to a big bank, and nothing’s changed. We still have our sights on an IPO.”

If the fundraising goes smoothly for Starling, the new valuation will likely reach $1.5 billion, according to Business Insider.

Fidelity’s involvement is the most notable but “A number of other blue-chip external investors” are also in discussions with Starling, according to Sky sources.

Starling manages more than two million customer accounts, of which just over 300,000 are small business customers.

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

Recent posts

Partnership between Credits and Unlimint

Credits is a digital neobank that combines many financial services into one application, focusing on providing financial services for the cryptocurrency space.

UK Neobank Zopa Raises £75 Million in All-Equity Investment

The company has 850,000 customers across its different businesses and is on track to be profitable for the full year in 2023, the first time since its founding 17 years ago.

UK SMEs Lean on Business Finance and Credit for Growth and Sustainability

As interest rates remain high, borrowing will continue to play a significant role in helping these businesses achieve their goals.

UK FinTech Funding: A Resilient Performance Amid Global Decrease

Despite the decline in funding for UK fintechs, there are still investment opportunities available.