Starling, the app-only digital challenger bank, has secured an investment of £60 million from existing investors Merian Global Investors and JTC. The funding will bring the total raised to £323 million and follows two funding rounds of £105 million.
Starling has opened 1.25 million accounts for consumers and small businesses, since launching its banking app in May 2017. It now holds more than £1.25 billion on deposit.
Anne Boden, founder and chief executive, said:
“The support of our existing investors represents a huge endorsement of our business strategy, as we continue to ramp up our growth. We’re constantly innovating and have big ambitions to turn Starling into a world-leading digital bank.
“We could not do this without the support of our 800 employees, who work so hard to provide a better banking experience for our customers, giving them more control over their finances. So I’m thrilled to be giving shares to them.”
Nick Williamson, co-manager of Merian Chrysalis Investment Company Limited, added:
“Starling has continued to innovate and has already established itself as one of the most highly-regarded UK challenger banks. Its superior user experience is winning over retail and business customers and we believe 2020 is set to be a defining year for the business.”
Announcing its latest funding round, Starling said it will continue its rapid expansion. It has also announced it will award shares to all 800 employees.