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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 no final decisions on the size or timing of any funding round have been taken. A representative for Starling declined to comment.
Recent stock market volatility and a rotation away from frothy assets complicated the route to going public for many startups. At the same time, an abundance of funding remains on offer in private markets.
Swedish payments firm Klarna Bank AB is weighing plans to raise new money
to cement its status as Europe’s most valuable startup, Bloomberg News reported.