The American multinational investment bank and financial services company Goldman Sachs invests around £50 million ($69 million) in Starling Bank, a digital challenger bank based in the United Kingdom.
Starling Bank has raised £50 million in funding from Goldman Sachs growth equity investment arm.
This new cash flow comes from on top of a £272 million investment round Starling announced last month that valued the online lender at £1.1billion.
Another thing that Starling says separates it from its competitors is that it’s managed to turn a profit. Neobanks have been lossmaking for years and now are under lot of pressure to prove their businesses can make money.
Banks with huge capital are increasingly looking to partner with tech firms — both big and small — to remain relevant at a time when smartphone banking is commonplace.
The Chief Executive Officer and founder of Starling, Anne Boden 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.”
The Managing Director of Goldman Sachs, James Hayward said:
“Starling is one of the leading and most innovative digital banks in the U.K., 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.”
