Challenger bank Starling to raise additional capital

Monday 9 November 2020 10:43 CET | News

UK-based challenger bank, Starling, has announced it is on track to be profitable by Christmas, but this does not mean it is not out raising additional capital already, according to TechCrunch.

Starling has hired Rothschild with the aim of raising a new GBP 200 million round. The draw is its expected profitability, which one source says is already creating private equity investor interest. Starling declined to comment.

Having raised GBP 363 million to date, including a GBP 100 million state-aid grant, Starling has now 1.9 million customers. And not only this, but the bank has also more than 280,000 business accounts for sole traders and small to SMEs, especially since it took part in the UK government’s bounce-back scheme for struggling businesses hit by the pandemic.

In an interview with TechCrunch, starling founder Anne Boden told the online publication that her aim is to get to an initial public offering. Still, to do that will almost certainly require additional capital injections for the next few years to continue telling an appealing story for future public investors, which will include further UK expansion and making meaningful in-roads into Europe.
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Keywords: Starling Bank, challenger banks, UK, funding, SMEs, investors, business accounts
Categories: Banking & Fintech
Countries: United Kingdom
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Banking & Fintech

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