Goldman Sachs invests £50m in Starling Bank
London, 19 April 2021: Starling, the leading UK digital bank, today announces a £50 million investment by Goldman Sachs Growth Equity (“Goldman Sachs”). The investment is an extension of the bank’s oversubscribed £272 million Series D funding round announced in March 2021, which valued it in excess of £1.1 billion pre-money. This takes the total raised in the Series D round to £322 million.
Starling now has more than two million current accounts, including 350,000 business accounts. Its deposit base has increased from approximately £1 billion just over a year ago, to now more than £6 billion.
It is the fastest-growing bank for small and medium-sized enterprises (SMEs) in Europe and now holds a 6% share of the UK’s SME banking market. It is on course to report its first full year in profit by the end of its next financial year-end.
The new funding announced today will support Starling’s continued rapid and now profitable growth.
Anne Boden, founder and CEO of Starling Bank, 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.”
James Hayward, managing director at Goldman Sachs, said:
“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.”
The transaction remains subject to regulatory approval.
About Starling Bank
Starling Bank is a digital bank based in the UK. It offers personal, business, joint, children’s euro and dollar current accounts alongside a range of lending products. Starling also offers B2B banking and payments services through its Banking-as-a-Service model based on its proprietary technology platform that it uses to power its own bank. The Starling Marketplace offers customers in-app access to a selection of third party financial 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 Goldman Sachs Growth Equity
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Growth is the dedicated growth equity team within Goldman Sachs, with over 25 years of investing history, over $8 billion of assets under management, and 9 offices globally. To read more, visit: https://www.growth.gs.com
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