UK challenger Starling Bank has landed a £50 million investment from GS Growth, Goldman Sachs’ growth equity arm.
The investment is an extension of the bank’s £272 million Series D funding round, which it secured in March 2021 alongside a pre-money valuation of £1.1 billion.
Goldman’s latest investment, which is still subject to regulatory approval, takes Starling’s current Series D to £322 million.
Goldman isn’t the only major US institutions interested in Starling. According to The Times, JP Morgan showed interested in acquiring Starling for its customer base last year.
JP Morgan is, this year, set to launch its UK digital bank to rival Goldman’s Marcus. Acquiring Starling, which now boasts two million current account customers and a £6 billion deposit base, would have made this market entry far easier.
6% share of UK SMEs
In February, Sky News revealed Starling Bank was raising a £200 million round led by new US investor Fidelity Management & Research (FMR).
In March, Starling confirmed the £272 million Series D funding round, which finally tipped it into the fintech unicorn club.
Despite reaching profitability in October, the UK challenger bank has continued to add to its largest round of capital investment yet.
As of March, gross lending exceeded £2 billion. And Starling now claiming to hold a 6% share of the UK SME banking market.
The fintech’s January 2021 revenue came in at £12 million. It therefore estimates an annualised revenue run rate of around £145 million by year end.
“Securing the support of another global financial heavyweight demonstrates the strength of demand from investors and represents yet another vote of confidence in Starling,” says Anne Boden, Starling’s founder and CEO.
“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.”