UK digital bank Starling announced a £272 million (US$ 376 million) Series D funding round led by Fidelity Management & Research Company.

The new investment values the company at £1.1 billion (US$ 1.5 billion) pre-money.

The funding will be deployed primarily to support a targeted expansion of Starling’s lending in the UK, as well as to launch Starling in Europe and for anticipated M&A.

Other investors include Qatar Investment Authority (QIA), RPMI Railpen, the investment manager for the £31 billion Railways Pension Scheme, and the global investment firm Millennium Management.

Since launching in 2017, it has opened more than two million accounts, including more than 300,000 small business accounts. Starling’s total gross lending now reportedly exceeds £2 billion, while deposits top £5.4 billion.

Rothschild & Co is acting as exclusive financial advisor with Norton Rose Fulbright acting as legal advisor to Starling Bank on this transaction.

The transaction remains subject to regulatory approval.

Anne Boden, Founder and CEO of Starling Bank said,

“Digital banking has reached a tipping point. Customers now expect a fairer, smarter and more human alternative to the banks of the past and that is what we are giving them at Starling as we continue to grow and add new products and services.

 

Our new investors will bring a wealth of experience as we enter the next stage of growth, while the continued support of our existing backers represents a huge vote of confidence.”

Featured image credit: Starling Bank