Merian Chrysalis Investment led the round with an investment of £20 million, while existing investor JTC gave an additional £10 million. The new funds will be used to boost investment in Starling’s retail and small business (SMB) bank accounts, as well as its B2B banking services, and accelerate its expansion into Europe.
Starling has currently raised a total of £263 million, with this latest funding following a £75 million investment round in February, led by Merian Global Investors. In addition, the bank received £100 million from the Capability and Innovation Fund, also in February, which will be used to build out its SMB account.
“We’ve come a long way since Merian Global Investors’ first investment of £50 million earlier this year, adding new products and features and accelerating our rate of customer acquisition,” said Anne Boden, founder and CEO of Starling Bank, in a press release. “This latest investment of £20 million from Merian Chrysalis will support Starling’s rapid growth, and help us reach 1 million customers and £1 billion on deposit within weeks. It will also help us accelerate our global expansion, starting in Europe, so that even more people can benefit from the Starling app.”
The new funding will help Starling grow upon the rapid success it has seen in the U.K. since its launch in 2017. So far, the bank has opened 930,000 accounts, and expects to hit 1 million customers within weeks.
Richard Watts, co-manager of Merian Chrysalis, added, “Starling is already proving to be a disruptive force in the banking industry, with its efficient, user-friendly platform gaining popularity among digitally savvy consumers and businesses. The new capital secured in this funding round will allow its management team to pursue its ambitious development program, and we’re delighted that we’re able to provide additional backing for this exciting business.”