Digital bank Starling has secured £50 million investment from Goldman Sachs Growth Equity.
The investment is an extension of the bank’s oversubscribed £272m 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 £322m.
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.
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