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Existing backers put another £40M into UK challenger bank Starling

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Existing backers put another £40M into UK challenger bank Starling

Starling Bank, the U.Okay.-based challenger financial institution based by banking veteran Anne Boden, has raised an extra £40 million in funding, TechCrunch has discovered.

The spherical is led by present backers, Harry McPike’s JTC and Merian Chrysalis Investment Company Limited, and provides to the £60 million raised in February this yr.

Now boasting 1.four million accounts, together with 155,000 enterprise accounts, Starling Bank has raised a complete of £363 million since its launch in 2014. Noteworthy, I’m informed that its deposit base has doubled within the final six months and it now holds greater than £2.four billion in deposits.

“This further funding from our present traders demonstrates their dedication each to Starling and to our small enterprise and private prospects who want our assist now greater than ever,” mentioned Starling’s Anne Boden in a press release confirming the fundraise.

I perceive the brand new funding will allow the financial institution to proceed investing in development, and, extra particularly, to offer “much-needed assist to small enterprise prospects who’ve been hit by the coronavirus emergency”.

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This has seen it collaborate with the U.Okay. authorities to extend lending to SMEs as a part of the nation’s numerous coronavirus disaster enterprise assist packages, together with £300 million below the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) and direct to its prospects below its personal CBIL and Bounce Back Loan Schemes.

To that finish, since launching SME accounts in March 2018 and securing £100 million in state assist through the Capability and Innovation Fund (CIF), enterprise banking has turn into a giant wager for Starling. It seems to be beginning to repay, too, with the financial institution now claiming to carry a 2.6% share of the U.Okay.’s SME banking market, with virtually £500 million of SME lending at the moment on its steadiness sheet.

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