Starling Bank Receives $69 Million Investment From Goldman Sachs to Continue Growth

By McKenzie Carpenter Monday, April 19, 2021

Starling Bank has announced the digital bank company received a $69 million investment from Goldman Sachs to support the rapid growth of the fintech business.

Person signing a contract on a smartphone.

About Starling Bank

Starling Bank is a neobank startup company that features an app based out of the United Kingdom (UK). A neobank refers to fintech services that are offered only online without physical bank branches. The digital bank offers personal, joint, business, teen, and children’s accounts for euros and dollars with a variety of lending products.

Founded in 2014, the fintech app business was launched to help people manage their money and “serve customers in a way that traditional banks hadn’t.” The neobank startup company also offers B2B services through its Banking-as-a-Service model based upon proprietary technology. Additionally, the Starling Marketplace offers in-app access to third-party financial services.

Starling Bank is reportedly one of the largest neobanks in the UK as it has more than £6 million ($8.4 million) in deposits. In addition, the startup company states it has more than 2 million customers, 350,000 of which are business clients. Furthermore, the fintech app business claims someone joins the Starling Bank platform every 39 seconds in the UK.

Crunchbase data indicates the startup has raised £635 million (about $885 million) over several financing rounds.

Series D Extension

Starling Bank announced it raised an additional £50 million ($69 million) as an extension to a Series D financing round that was initially announced in March of this year. This Series D extension is led by Goldman Sachs Growth Equity.

The app business previously raised £272 million ($379 million) in March, but with this additional capital, the total amount raised in this round is £322 million ($448.7 million). Starling Bank was previously valued at £1.1 billion ($1.5 billion); however, a new valuation has not been disclosed.

According to the press release, Starling Bank now holds 6% of the market share in the UK for small and medium-sized enterprise (SME) banking. In addition, the neobank startup company is on track to record its first full year of profitability by the end of the next financial fiscal year.

James Hayward, managing director at Goldman Sachs, said in a statement, “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.”

With the new capital, the fintech app business plans to support its continued growth. Anne Boden, CEO and founder of the fintech startup, added the new capital will help with lending expansion in the UK, business expansion into Europe, and anticipate mergers and acquisitions (M&A).

The deal is still subject to regulatory approval.

Starling Bank is competing against other UK neobanks such as Revolut and Monzo. Grand View Research reported the global neobanking industry was valued at $34.77 billion in 2020. The industry is expected to grow at a CAGR of 47.7% from 2021 to 2028.

About the Author

Headshot for author McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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