Starling seeks $3.4bn value in funding round

Starling seeks $3.4bn value in funding round

Banking















Bloomberg

Starling Bank Ltd. is weighing plans for a fresh funding round that could value the UK challenger at around 2.5 billion pounds ($3.4 billion).

The digital lender is considering raising money from its existing backers, which include Goldman Sachs Group Inc., the people said, asking not to be identified because the information is private.

London-based Starling is bidding to acquire platform of specialist mortgage lender Kensington and could use proceeds from the new funding round to expand the business’s origination capabilitie. Kensington, which is backed by Blackstone Inc., offers home loans to the self-employed and people over 55 years of age.

Starling secured 272 million pounds from investors including Fidelity Management & Research Co, and Millennium Management last March. Starling has opened more than 2.5 million accounts since launching in 2014.

The startup is one of the companies the UK is hoping will list at home as the battle to attract technology companies ramps up. Anne Boden, Starling’s chief executive officer and founder, said last year that London would be its venue of choice for an IPO in late 2022 or early 2023.

Deliberations are in the early stages and