Starling is a UK-based digital bank offering personal, business, joint, children’s, euro and dollar current accounts alongside a range of lending products. It provides B2B banking and payments via a Banking-as-a-Service model built on its proprietary technology platform, and an in-app Starling Marketplace for third-party financial services. Founded in 2014 and based in London with offices in Southampton, Cardiff and Dublin, Starling claims over 2 million current accounts, including 350,000 business accounts. Its deposit base has grown from approximately £1 billion just over a year ago to more than £6 billion, and it says it holds a 6% share of the UK SME banking market. Management says the bank is on course to report its first full year in profit by the end of its next financial year-end. The company plans to use new funding to support continued rapid—and described as now profitable—growth, expand lending in the UK, pursue European expansion and anticipated M&A. Starling provides digital banking services, including checking, deposits and other consumer and business banking products delivered via mobile and online platforms. The bank reported revenue of £12 million in January, a 400% year-over-year increase, with an annualized revenue run rate of £145 million. Starling is already profitable, posting operating profits for a fourth consecutive month and net income exceeding £1.5 million per month. The company has opened over 2 million accounts, including 300,000 business accounts; gross lending has passed £2 billion and deposits stand at £5.4 billion. Starling said it will use the new funding to expand its lending operations in the U.K., move into other parts of Europe and pursue strategic acquisitions. The bank was founded in 2017 and competes with incumbent banks as well as other challengers such as Monzo, Revolut, Tide, Atom and Monese. Starling was launched in 2014 by a former Allied Irish Banks COO and is based in London, with offices in Southampton, Cardiff and Dublin. Its mobile app provides personal, business, joint and euro current accounts on Android and iOS and a marketplace giving customers in-app access to third-party financial services. The bank also offers B2B banking and payments services and is fully licensed and regulated. Starling has almost £500 million of SME lending on its balance sheet, with further commitments raising the total to nearly £1 billion. It serves more than 1.4 million current accounts, including 155,000 business accounts, and holds more than £2.4 billion in customer deposits. Since launch the company has raised significant capital to support its operations. Starling Bank is a London-based digital bank that operates personal and business current accounts, a marketplace, payment services for banks and e-money institutions, and Banking-as-a-Service. Founded in 2014 and licensed in 2016, it launched its mobile banking app in May 2017 and has opened 500,000 current accounts, including more than 30,000 SME business accounts in less than a year. The bank says it will invest €109 million of its own money and create 398 new UK jobs as part of the initiative funded by the grant. With the €115 million award from the Capability and Innovation Fund, Starling plans to make €1 billion in lending available to SME customers by the end of 2023 and to launch a web portal for SME banking later this year. Management expects to achieve a 6.7% market share within five years; the grant is intended to accelerate investment in proprietary technology and expand UK-based customer service and support.

Total raised

$625M

Funding rounds

4

Latest round

Equity

Latest activity

Apr 2021