Digital lender Starling Bank secures £50m from Goldman Sachs

Goldman Sachs

The challenger bank said the funding would be used to support its continued and now profitable growth

Digital lender Starling Bank has extended its latest funding round with a £50m investment from Goldman Sachs.

Last month it announced a £272m Series D funding round led by Fidelity Management & Research which valued it over £1.1bn pre-money.

Starling Bank today said Goldman Sachs investment marked an extension of the oversubscribed round, taking the total raised to £322m.

It said the funding would be used to support its “continued rapid and now profitable growth”.

Starling has attracted more than 2m customers since its launch in 2017 and is one of the few challenger banks to have turned a profit in the past year.

The lender has fared well in the pandemic largely due to its business banking push helped by its participation in the government’s coronavirus lending scheme.

Its gross lending now exceeds £2bn, while deposits have surpassed £5.4bn.

Securing the support of another global financial heavyweight demonstrates the strength of demand from investors and represents yet another vote of confidence in Starling, founder and chief executive Anne Boden.

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, she said.

Starling Bank has already received attention from City bigwigs Lloyds and JP Morgan. Last autumn it was reported JP Morgan had talked about buying Starling while Lloyds was interested in its technology.

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, James Hayward, managing director at Goldman Sachs, said.

He said: We are delighted to be supporting their growth with this investment and believe the company has sustainable long-term earnings potential.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

getting money wise

Welcome! Get your FREE access to EVERYTHING we publish…

Our goal is to show anyone how to make investing profitable. You’ll get our FREE weekly newsletter with latest news and information on investment topics along with special offers. Please take time to read our privacy policy . The information you provide us will be processed in accordance with this.