Starling Bank raises £130.5 million at £2.5 billion valuation

Quick Take

  • Starling Bank, which launched in 2014, has raised £130.5 million among investors including Goldman Sachs
  • The bank will use the funding for more acquisitions, with a focus on the lending space.

UK-based challenger bank Starling Bank has completed a £130.5 million internal fundraising round at a £2.5 billion valuation.

The funding came from existing investors Fidelity Management and Research Company, RPMI Railpen, Qatar Investment Authority, Goldman Sachs and Harald McPike. 

In a statement on Tuesday, the company said the money would enable it to continue growth and “build a war chest for acquisitions.” 

“We are looking at a number of potential targets," a spokesperson added.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Although the bank declined to go into specifics about targets, The Block understands that Starling Bank is interested in acquiring lenders, and is currently looking at specialist lender Kensington Mortgages. This Is Money first reported Starling’s interest in the business in January. 

Starling Bank was founded in 2014 by Anne Boden as an alternative bank account provider. Boden has previously said that the company aims to go public by 2023.

In July last year, Starling Bank acquired buy-to-let mortgages lender Fleet Mortgages in a £50 million cash and share deal.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Callan Quinn is an NFT, gaming and metaverse reporter. She started her career working for the expat magazine City Weekend in Guangzhou, China. She also has worked as a business journalist in the UK, Somaliland and the republic of Georgia. Before joining The Block, she was a freelance journalist covering the Chinese tech industry. She speaks Mandarin, French and German. Get in touch via Twitter @quinnishvili or email [email protected].