UK challenger Starling Bank gets an extension to previously oversubscribed Series D round by Goldman Sachs Growth Equity investing £50 million.
This makes the total raised in the investment round to £322million. Before the investment, Starling was valued at £1.1billion.
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Starling has managed to get more than two million current accounts, including about 350,000 business accounts.
Anne Boden has also recently announced a plan in which Starling Bank is going to hold 18% of the SME banking market in five years. The current share of the small business market is around 4.4%.
Starling bank is reportedly on course to close its first full year in profit by the end of its next financial year-end.
Anne Boden, founder and CEO of Starling Bank, says: “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,” she added.
James Hayward, managing director at Goldman Sachs, said: “Starling is one of the leading and most innovative digital banks in the UK, with an ambitious technology-first leadership team and addressing a deep market opportunity. We are delighted to be supporting their growth with this investment and believe the company has sustainable long-term earnings potential.”
