Starling Bank is reportedly preparing a secondary share sale that could value the London-based digital lender at up to £4 billion.
According to the Financial Times, the bank has hired advisers, including Morgan Stanley and Rothschild, to oversee the process, according to people close to the matter.
The sale will give existing backers such as Goldman Sachs, Railpen, Chrysalis Investments and Fidelity an opportunity to reduce their holdings, while creating space for new investors.
Starling was last valued at £2.5 billion in 2022, but its worth was marked down in 2023 after Jupiter Asset Management sold its stake, cutting the bank’s valuation to between £1 billion and £1.5 billion.
Founded in 2014 by Anne Boden, who stepped down in 2023, Starling now has more than 4 million UK customers.
Under chief executive Raman Bhatia, the lender is weighing a US expansion through the purchase of a chartered bank. It is also pushing the growth of its Engine software platform, already licensed to banks overseas.