Challenger bank Starling has secured an additional £60m in funding from existing investors to continue its expansion plans.

The latest investment, which came from Merian Global Investors and JTC, brings Starling’s total funding to £323m since the mobile-only bank launched in 2017.

All of Starling’s 800 employees will be awarded shares in the company as part of the latest funding boost.

“The support of our existing investors represents a huge endorsement of our business strategy, as we continue to ramp up our growth,” said Anne Boden, founder and chief executive of Starling Bank.

“We’re constantly innovating and have big ambitions to turn Starling into a world-leading digital bank.

“We could not do this without the support of our 800 employees, who work so hard to provide a better banking experience for our customers, giving them more control over their finances. So I’m thrilled to be giving shares to them.”

Starling Bank funding to boost 2020 expansion

Starling Bank, which counts the likes of Monzo and N26 among its rivals, has opened 1.25 million accounts for consumers and small businesses, holding more than £1.25bn on deposit.

Nick Williamson, co-manager of Merian Chrysalis Investment Company Limited, said: “Starling has continued to innovate and has already established itself as one of the most highly-regarded UK challenger banks.

“Its superior user experience is winning over retail and business customers and we believe 2020 is set to be a defining year for the business.”

In the previous two funding rounds, the London headquartered bank raised a combined £105m.

Last week, Starling announced three new partners: online buy-to-let mortgage lender Molo, freelancer management platform UnderPinned and digital accounting service PayStream.

The new additions brought Starling’s total integration partners to 24, with services spanning across business-to-business and consumer-facing.

In January, Starling expanded its loan offerings for businesses and sole traders.

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