Starling Bank Investor Eyes £10bn Valuation with Global Software Expansion
Hey FinTech Fanatic!
UK challenger bank Starling could reach a valuation near £10bn within a few years by globally rolling out its banking software, according to Chrysalis, its second-largest investor.
Chrysalis highlighted that Starling's "Engine" service, which allows companies to create digital banking products, could significantly boost the bank's revenue.
Richard Watts, co-manager at Chrysalis, emphasized Engine's potential to drive Starling's growth by opening up a global market for banking infrastructure. He projected that Engine could expand to 40-50 clients, generating substantial annual revenue.
Starling, founded by Anne Boden in 2014, initially offered retail current accounts and later expanded to business lending and mortgages.
Last year, it signed Salt Bank in Romania and AMP Bank in Australia as its first Engine clients.
In 2023, Starling generated a pre-tax profit of £195mn, a six-fold increase from the previous year, with revenues rising from £216mn to £453mn.
The bank is aiming for a public listing but has not provided a timeline.
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