The newest funding brings the entire raised by Starling this yr to £100m, because the start-up takes benefit of the SME lending market through the coronavirus pandemic.
On Friday (29 Could), London-based fintech Starling introduced that it has raised £40m in its newest funding spherical. The spherical was led by current backers JTC and Merian Chrysalis Funding Firm.
The funding comes after the corporate closed a £60m funding spherical in February 2020, bringing the entire raised by the corporate this yr to £100m. Because the start-up was launched in 2014, it has raised a complete of £363m.
Starling stated that it now has greater than 1.4m present accounts, together with 155,000 enterprise accounts on its banking platform, which was launched in 2017. The corporate stated that its deposit base has doubled within the final six months to £2.4bn.
Plans for funding
In an announcement, Starling stated that it plans to make use of the funding to proceed rising and to supply much-needed assist to small enterprise prospects who’ve been hit by the coronavirus emergency.
The corporate stated that it holds a 2.6pc share of the UK’s SME banking market and has nearly £500m in SME lending on its steadiness sheet.
The corporate stated it has additional commitments to boost the entire of SME loans on its platform to nearly £1bn. The beginning-up stated that its working model has enabled it to ramp up lending in Could through the coronavirus pandemic.
Starling stated that it has made a collaboration to lend £300m by way of the UK government-backed Coronavirus Enterprise Interruption loan Scheme (CBILS) and below its personal CBIL and bounce again loan schemes.
The corporate’s CEO, Anne Boden, stated: “This additional funding from our existing investors demonstrates their commitment both to Starling and to our small business and personal customers who need our support now more than ever.”
Previous to launching the start-up, Boden served as chief operation officer of Irish bank AIB, head of EMEA for Royal Bank of Scotland and government vice-president of ABN Amro Bank. Her profession in banking, which spans nearly 4 a long time, started at Lloyds Bank.