British challenger bank Starling has completed a £130.5m fundraise from previous investors to “build a war chest for acquisitions”.
The latest funding came at a pre-money valuation of more than £2.5bn for the London-headquartered digital bank.
“This will enable us to continue our growth and to build a war chest for acquisitions. We are looking at a number of potential targets,” a Starling spokesperson said.
Starling did not share any details on its acquisition targets. Starling has previously acquired UK-based buy-to-let mortgage lender Fleet Mortgages in a £50m cash and stock deal.
Founded in 2014 by Anne Boden, Starling provides personal and business accounts, along with B2B banking and payments services through its banking-as-a-service model.
Last year Starling raised a total of £322m, with £272m of that coming in a Series D funding round in March. That investment gave the bank unicorn status – privately held companies valued at $1bn or more.
UKTN has contacted Starling for comment.