The fundraise was at a pre-money valuation of £2.5bn, with Goldman Sachs, Fidelity Management and Research Company, Qatar Investment Authority, Harold McPike and RPMI Railpen all participating in the round.
The bank said that the funding would be used to “continue our growth” and “build a war chest” for acquisitions. A Starling Bank spokesperson said that it was looking at a “number of potential targets”.
The spokesperson said: “We are pursuing a targeted merger and acquisition strategy focusing on selected lending originators; that may include mortgage lenders.”
The bank now has a surplus capital of nearly £400m.
Last year, the bank acquired Fleet Mortgages in a £50m transaction, making it the sole funder of the lender’s future originations.
Fleet Mortgages in turn would be able to access Starling’s deposit customer base via the deal.
It marked Starling’s entrance into the mortgage market, and at the time said it was part of its plans to grow its lending through mergers and acquisitions and forward-flow arrangements, where it will purchase loans originated by other providers.
The bank was also reported to be interested in acquiring Kensington Mortgages’ platform earlier this year, along with Barclays, M&G and Pimco.