Starling Bank has raised £40 million from existing investors.

The challenger bank has raised £363 million since it was founded with the aim of launching its app-based current account services in 2014.

Chief strategy officer Declan Ferguson said it now has more 1.4 million current accounts, including 155,000 business accounts, and more than £2.4 billion on deposit.

The funding round, which comes after a £60 million fundraise in February, was led by existing investors Harry McPike’s JTC and Merian Chrysalis Investment Company.

In a statement, Starling said that the Coronavirus had accelerated the shift to digital channels for banking customers.

“As an app-based bank, Starling has seen robust customer acquisition since the lockdown, especially in the business account channel, where daily sign-ups have accelerated from the start of the year”, it stated.

The bank increased its lending to small business customers in response to the lockdown via a collaboration for £300 million under the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) and direct to its customers under its own CBIL and Bounce Back Loan Schemes.

Founder and chief executive Anne Boden commented: “This additional funding from our existing investors demonstrates their commitment both to Starling and to our small business and personal customers who need our support now more than ever.”

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