By
Chimamanda U. Martha
May 2nd, 2024
Starling has caught the eyes of JPMorgan and Barclays that showed interest in acquiring the digital bank. Starling Bank, however, has declined the requests.
UK-based digital bank Starling expects its initial public offering (IPO) to be within the next two years. The CEO of the digital challenger bank, Anne Boden, revealed the matter to reporters on the 2nd of November. In a statement, the CEO said that Starling bank’s expected IPO is a “year or two off.” She specified that it is in at least a year away. Additionally. Boden told reporters that “we’re talking about one or two years away.”
Starling Bank’s Expected IPO to Take Place in London
According to the CEO, Starling bank’s upcoming IPO will likely take place in London, the company’s headquarter location. In her opinion, London seems to be the default option for the bank’s public debut.
Investment banking company Goldman Sachs (NYSE: GS) is one of the investors Starling banks counted as its investors. The UK challenger bank also mentioned Fidelity Investments and Qatar’s sovereign wealth fund.
Starling and other digital financial service providers like Monzo and Revolut are used by millions of people across the UK. Founded in 2014, Starling now has millions of users who use its app and a linked payment card to conduct their transactions. The bank wholly performs its business online – no physical branches.
The British digital bank secured $367 million in an investment round in March. The financing round was led by Fidelity Investments, pushing the company’s valuation to $1.5 billion. The cash injection which increased Starling’s valuation caused the digital bank to be ranked as one of Europe’s unicorn companies. Qatar Investment Authority, UK pension scheme Railpen, and hedge fund Millennium Management also contributed to the financing.
According to Starling bank, the fresh funds will be used for expansion into Europe. The bank also said it would use the raised capital for potential mergers and acquisitions.
Starling Adds New Feature
As Starling offers more services to its users, the digital bank has launched a Bills Manager feature. The new feature is available on the Savings Space. Customers need to go to the “Manage Space” option and then “Pay bills from this Space.” Boden commented that the new feature is available based on customers’ requests. She also said that the Bills Manager would also help users to efficiently manage their money which is the company’s primary goal.
Starling’s market debut will join the series of tech giants already existing in the UK technology sector. Earlier this year, fintech firm Wise was listed on the London Stock Exchange at a valuation of $11 billion. At its market debut, the fintech firm went public under the ticker “WISE.” Also, food delivery company Deliveroo went public in March. However, the company shed about 300$ on the first day of trading.
Starling has caught the eyes of JPMorgan Chase and Co (NYSE: JPM) and Barclays Plc (LON: BARC), who showed interest in acquiring the digital bank. Starling Bank, however, declined the requests.