UK digital bank Starling Bank has raised £30m in a new funding round.
The new funding will support the firm’s increased investment in financial retail and SME bank accounts as well as its B2B banking services and enable it to accelerate its expansion into Europe.
Since launching its app in May 2017, the ‘challenger bank’ has opened 930,000 accounts and now expects to hit one million customers within weeks.
Merian Chrysalis Investment Company Limited led the round with an investment of £20 million, while Starling’s existing investor, JTC, has added a further £10 million.
Anne Boden, founder and CEO of the bank told BusinessCloud earlier this year that of the firm’s European expansion plans and its ultimate goal of tens of millions of customers.
Today’s investment brings the total raised by Starling to £263m, and follows a £75 million funding round, led by Merian Global Investors in February and a £100m award as part of the £280m Capabilities and Innovation Fund in the same month.
Boden said the firm has come along way since its £50m funding from Merian Global Investors’ earlier in the year.
“This latest investment of £20 million from Merian Chrysalis will support Starling’s rapid growth and help us reach one 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.”
Richard Watts, co-portfolio 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 programme and we’re delighted that we’re able to provide additional backing for this exciting business.”
The news comes hot on the heels of competitor Revolut’s announcement that it is working with Mastercard to make its cards available internationally.