Starling Bank has received a £50 million investment from Goldman Sachs Growth Equity.
The investment is an extension of Starling’s oversubscribed £272 million series D funding round announced last month, which valued the digital bank 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 among 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 will support Starling’s continued growth.
Anne Boden, founder and chief executive officer 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.”