Starling Bank Raises £75M
Starling Bank has raised £75m in a Series C funding round led by Merian Global Investors, to fund its international expansion across Europe. The funding will also support increased investment in Starling’s financial products in retail and SME banking as well as banking services in the UK.
Since launching its app in May 2017, Starling has built up a customer base of 460k personal current accounts and 30k SME accounts, with expectations to hit one million customers by the end of 2019. Its Banking Services division, which makes the bank’s “proprietary best-in-class banking and payments infrastructure” available to third parties, has 20 institutional clients, including three new customers this week, while payment volume in its Payment Services is doubling month on month. The Starling Marketplace, Europe’s first fully integrated financial marketplace, provides customers with access to third-party financial services and now has 11 partners, including insurance partners such as Zego and so-sure, “with many more in the pipeline.”
“Building our platform and launching in the UK to provide genuine choice to retail, SME and Banking-as-a-Service customers was just the first step. Our ambition is to use our technology to build a next-generation global, digital banking platform, starting with our launch across Europe this year.” – Founder and CEO of Starling Bank, Anne Boden.
“Financial services is a market undergoing considerable change, driven by technology and users’ desire for better and more convenient offerings. The Starling team has developed a highly impressive and efficient platform, which we believe positions it well to continue to take share in core banking markets, as well as the ability to offer innovative new services in the future. We are delighted to be backing Anne and her team with this investment, and look forward to supporting them as they realize the full potential of the business.” – Co-portfolio manager, Merian Chrysalis, Nick Williamson.