Starling Bank raises £40m, bringing total raised this year to £100m, as it steps up support for small businesses

29th May 2020

London, 29 May 2020: Starling, the leading UK digital bank, has raised £40 million, in a funding round led by JTC and Merian Chrysalis Investment Company Limited.

The investment from Starling’s existing investors follows a £60 million investment in February 2020, bringing the total raised by Starling in 2020 to £100 million. Since its launch in 2014, the bank has raised £363 million.

Starling now has more than 1.4 million current accounts, including 155,000 business accounts, since launching its banking app in May 2017. Its deposit base has more than doubled in the last six months and it now holds more than £2.4 billion on deposit.

Starling is the fastest-growing bank for small and medium-sized enterprises (SMEs) in Europe and now 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.

The new funding will enable the bank to continue its rapid growth and help it provide much-needed support to small business customers who have been hit by the coronavirus emergency.

The lockdown has accelerated the shift to digital channels. As an app-based bank, Starling has seen robust customer acquisition since the lockdown, especially in the business account channel, where daily sign-ups have accelerated from the start of the year.

Starling’s agile operating model also enabled it to step up its lending to SMEs in May, via a collaboration for £300 million under the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) and direct to its customers under its own CBIL and Bounce Back Loan Schemes.

Anne Boden, founder and chief executive of Starling Bank, said: “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.”


About Starling Bank

Starling Bank is a digital bank based in the UK. Its banking app offers personal, business, joint and euro current accounts on Android and iOS. The Starling Marketplace offers customers in-app access to a selection of third party financial services. Starling also offers B2B banking and payments services. Headquartered in London, with offices in Southampton, Cardiff and Dublin, Starling is a fully licensed and regulated bank, founded by Anne Boden, former Allied Irish Banks COO, in 2014.

About Merian Chrysalis Investment Company

Merian Chrysalis Investment Company Limited is a Guernsey-domiciled investment company traded on the London Stock Exchange. It aims to generate long-term capital growth through investing in a portfolio of fast-growing and highly disruptive unquoted companies. The Company’s investment adviser is the asset manager, Merian Global Investors, a leading public investor in the UK. Merian Global Investors has proven experience in the crossover investing space and funds managed by Merian Global Investors have made investments in, amongst others, TransferWise, Graphcore, and Klarna.

About JTC

JTC is part of the McPike Global Family Office (MGFO) that oversees the investment activity of its founder, Harry McPike. The MGFO operates a proprietary quantitative trading firm and is a global private investor with a focus on technology and financial sector opportunities.

Contact:

Alexandra Frean
alexandra.frean@starlingbank.com
+44 7973 668363

Pagefield
starlingbank@pagefield.co.uk
+44 203 874 6639