British digital bank Starling is one of the top four UK companies expected to go public in 2023. Headquartered in London, UK, Starling offers mobile commercial banking services, same-day payment services, and real-time spending intelligence.
Alongside Starling, UK companies Arm Holdings, Revolut, and Zopa could also make their IPO debut this year.
Founded in 2014, by British female entrepreneur Anne Boden, Starling is considered a rare British “unicorn” in the fintech industry. Boden had a long career in corporate banking, having worked for the British bank Lloyds.
Starling has no physical branches but is a platform that is accessed primarily via its mobile app and the company’s website. It makes money via subscriptions, interest payments, interchange fees, and other fees such as transfers, overdrafts, referrals, and licensing.
The digital bank gas opened more than two million accounts, since launching, including more than 300,000 small business accounts. Its total gross lending exceeds £2 billion, and deposits top £5.4 billion.
Since its inception, Starling has amassed several industry awards. In 2018 it was voted Best British Bank by Smart Money People’s Best British Bank Awards, while in 2021 and 2022 it won The Which? Banking Brand of the year.
Starling recently opened a new office in Manchester, intending to create 1,000 jobs in the region.
|Number of employees||2,000|
|Revenue 2021||£188 million|
|Stock Exchange||London Stock Exchange|
Source: Starling Bank
In 2022 Starling reported a first full year of profitability, posting a pre-tax profit of £32.1 m. It hasn’t ruled out an IPO in 2023 but has also said that it’s not in immediate need of capital, according to UK tech News.
Its existing investors include Goldman Sachs, Fidelity Management & Research Company, and the Qatar Investment Authority. Starling has raised £130.5 million “to build a war chest for acquisitions” according to Financial Times, doubling its valuation to more than £2.5 billion.
If the IPO happens, it could take place on the London Stock Exchange, which is the default option for a UK-based company.
An Initial Public Offering (IPO) is an investor’s first chance to gain exposure to an organisation. An IPO is an important milestone for a company looking to raise capital and an opportunity for investors to get involved in a hopefully growing business.
With Axi you can get exposure to Starling IPO as soon as it’s listed on a specific exchange and prices from the exchange become available to our liquidity providers.
Sources: Financial Times, UK Tech News
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