Goldman Sachs Invests 78 Billion KRW in UK Digital Bank 'Starling'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Byunghee Park] Major foreign media reported on the 19th (local time) that Goldman Sachs has invested 50 million pounds (approximately 77.8 billion KRW) in the UK digital bank Starling.

Starling announced last month that it had raised $272 million in investments from Fidelity, Qatar Investment Authority, and others. At that time, Starling was valued at 1.1 billion pounds. Starling stated that the Goldman Sachs investment would be treated as an extension of the investment round announced last month.

Starling started its service in 2017 and is a startup expected to experience steep growth in the future. In particular, Starling has shown rapid growth since the spread of COVID-19 last year. As the UK government introduced support programs for self-employed individuals and small businesses, Starling's loans have also increased significantly.

Starling currently has a total loan amount exceeding 2 billion pounds, about one-third of which surged since October last year. Additionally, it revealed that it has posted profits for four consecutive months from October last year to January this year.

Starling stated that as the loan scale expands, it will need to continuously raise additional funds until its initial public offering (IPO). It also explained that the IPO should be scheduled as soon as possible, likely by the end of next year.

Last year, there were speculations that large banks such as JP Morgan Chase might attempt to acquire Starling. However, Anne Boden, CEO of Starling, has repeatedly expressed her intention to pursue growth through an IPO. She emphasized that Goldman Sachs's 50 million pounds investment is not a strategic investment but a financial investment by Goldman Sachs Asset Management.

James Hayward, director at Goldman Sachs, said, "Starling is one of the most innovative companies leading the digital banking industry in the UK," adding, "We are pleased to support Starling's growth through this investment and believe that Starling will generate sustainable profits in the long term."