Goldman Sachs’ Growth Equity has invested £50m into the UK’s leading digital bank Starling.
The investment is part of an extension of Starling’s oversubscribed £272m Series D round from March of this year, where the company was valued at £1.1bn pre-money. Following this new influx, the Series D round has now raised £322m.
According to the digital bank, the new funding – still subject to regulatory approval – will support its continued rapid and profitable growth.
Starling now has more than two million current accounts and around 350,000 business accounts and is the fastest-growing bank for SMEs in Europe, holding a 6% share of the UK’s SME banking market.
Starling’s deposit base has risen from around £1bn in 2020 to now more than £6bn. The company claims it is on course to report its first full year in profit by the end of its next financial year-end.
Starling Bank founder and CEO Anne Boden said, “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.”
Goldman Sachs managing director James Hayward added, “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.”
Starling recently introduced debit cards made of recycled plastic in a bid to boost its sustainability goals. The card will be made from recycled plastic (rPVC), and the material, which makes up 75% of the card, has been sourced from EU industrial waste from printing and packaging industries.
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