Starling Bank raises £130.5m from existing backers at a £2.5bn valuation to fund acquisitions

Starling Bank has secured £130.5m in fresh capital from its existing investor base, pushing its pre-money valuation above £2.5bn. The funding round was supported by prominent backers including Fidelity Management and Research Company, the Qatar Investment Authority, Goldman Sachs, and Harald McPike through JTC.

The new capital will be deployed to support the bank's continued growth and to finance potential acquisitions, with a specific focus on targeted lending originators. Starling currently holds surplus capital approaching £400m following the transaction.

The raise follows a period of strong commercial momentum for the challenger bank, which has surpassed 3m accounts and increased revenue significantly in recent financial reports.