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UK’s Starling Bank raises $376 million for lending, overseas push

Mar 8, 2021

LONDON (Reuters) – British digital lender Starling Bank said on Monday it has completed a 272 million pounds ($376.39 million) fundraising to fuel lending growth and expansion across Europe.

The bank said the series D funding round was led by Fidelity Management & Research Company, alongside the Qatar Investment Authority, Railpen and Millennium Management.

The round values the company at 1.1 billion pounds pre-money, the company said, with funds raised also going towards a mergers and acquisitions push.

Since launching in 2017, Starling has attracted more than two million customers and lent more than 2 billion pounds.

The lender has fared better in the pandemic than some start-up rivals, including Monzo, with its business banking push accelerated by taking part in state-backed lending schemes.

Anne Boden, founder and CEO of Starling said the fundraising represented a “huge vote of confidence” in the business.

In a trading update, the company said its net income had topped 1.5 million pounds per month, while customer deposits exceeded 5.4 billion pounds.

($1 = 0.7226 pounds)

(Reporting by Iain Withers, editing by Karin Strohecker and Louise Heavens)