The Block: Starling Bank raises £130.5 million at £2.5 billion valuation

UK-based challenger bank Starling Bank has completed a £130.5 million internal fundraising round at a £2.5 billion valuation.

The funding came from existing investors Fidelity Management and Research Company, RPMI Railpen, Qatar Investment Authority, Goldman Sachs and Harald McPike.

In a statement on Tuesday, the company said the money would enable it to continue growth and “build a war chest for acquisitions.”

“We are looking at a number of potential targets," a spokesperson added.

Although the bank declined to go into specifics about targets, The Block understands that Starling Bank is interested in acquiring lenders, and is currently looking at specialist lender Kensington Mortgages. This Is Money first reported Starling’s interest in the business in January.

Starling Bank was founded in 2014 by Anne Boden as an alternative bank account provider. Boden has previously said that the company aims to go public by 2023.

In July last year, Starling Bank acquired buy-to-let mortgages lender Fleet Mortgages in a £50 million cash and share deal.

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