(Alliance News) - Chrysalis Investments Ltd on Thursday said it invested a further GBP35 million in Starling Bank, in a funding round valuing the digital banking startup at GBP1.3 billion.
Shares in Chrysalis were up 4.8% to 254.70 pence in London on Thursday morning, making it the top performer in the FTSE 250 index.
The investment is connected to Starling's Series D funding round in April when it raised GBP322 million, Chrysalis said. The Guernsey-based investment firm did not initially take part but negotiated an option to participate, which has now been exercised. The funding round was led by Fidelity Investments Inc and included Qatar Investment Authority.
Chrysalis has been a longtime backer of Starling, which made up 9% of its GBP1.13 billion portfolio as of March 31. That made the investment firm's stake in Starling worth around GBP101.7 million before the new funding round.
Starling, founded in 2014, has enjoyed rapid growth with its deposit base jumping to over GBP6 billion from GBP1 billion a year ago.
Chrysalis co-portfolio managers Nick Williamson and Richard Watts said: "Starling made huge strides over 2020, seeing substantial growth in customer numbers, deposits and lending.
"This drove approximately 400% revenue growth over the year to January 2021 and positioned the bank into sustainable profitability."
By Ivan Edwards; ivanedwards@alliancenews.com
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