UK challenger bank Starling Bank has raised a further £60m from its investors, and promises to issue shares to all of its employees.
The digital bank’s latest round of funding, amounting to £60m, came from Merian Global Investors and JTC, and brings the total to £323m. Two earlier round last year, led by Merian, totalled £105m.
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Starling has pledged to give shares to all 800 of its employees, “allowing everyone in the company to share in its success,” the banks said.
The new infusion of fund will allow the mobile-only bank to continue its rapid and disruptive expansion. Founded in 2014, the London-based bank focuses on current and business account products.
“The support of our existing investors represents a huge endorsement for our business strategy, as we continue to ramp up our growth,” said Anne Boden, founder and chief executive.
“Thrilled to be giving shares” to employees
Boden said the bank, which is constantly innovating, has big ambitions to transform itself into a world-leading digital bank.
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By GlobalData“We could not do this without the support of our 800 employees, who work so hard to provide a better banking experience for our customers, giving them more control over their finances,” she added. “I’m thrilled to be giving shares to them.”
The employees will qualify for the awarded shares after they have completed the standard probation.
Nick Williamson, co-manager of Merian Chrysalis Investment Company Limited, said:
“Starling has continued to innovate and has already established itself as one of the most highly-regarded UK challenger banks. Its superior user experience is winning over retail and business customers and we believe 2020 is set to be a defining year for the business.”
The investors
Merian Global Investors is a major public investor in the UK. The company has experience in the crossover investing space. Funds managed by Merian Global Investors have made investments in, amongst others, TransferWise, The Hut Group, Graphcore, and Klarna.
JTC is part of the McPike Global Family Office (MGFO) that oversees the investment activity of its founder, Harry McPike. The MGFO operates a proprietary quantitative trading firm and is a global private investor with a focus on technology and financial sector opportunities.
