Starling secures £50 mn investment from Goldman Sachs Growth Equity

By Megha Bhattacharya

UK-based digital bank Starling today announced a £50 million investment by Goldman Sachs Growth Equity. Starling stated that the investment is an extension of its £272 million Series D funding round announced in March 2021, which valued it in excess of £1.1 billion pre-money, taking the total raised in the Series D round to £322 million. The transaction is subject to regulatory approval.

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.”

Recently, Starling announced the launch of a recycled plastic debit card. The Bank’s new card is the first UK Mastercard debit card to be made from recycled plastic (rPVC), sourced from EU industrial waste from printing and packaging industries and making up 75% of the card. According to Starling, existing customers will receive the recycled card when their current one expires and new customers will be issued the card upon joining the bank.