Starling Bank, a 7-year-old U.K. neobank, crossed 2 million accounts on the heels of its biggest fund raise yet: $376M, led by Fidelity investments. Others that participated included the Railways Pension Scheme, Millennium Management, and the Qatar Investment Authority, which was an investor in fellow neobank SoFi.

Why should we care?
Starling Bank is one of the frontrunners among digital banking startups in the U.K. market. Unlike many of its competitors, the company is profitable: March marks the company’s fourth month as a profitable company. The new funding brings the company’s valuation to $1.9B, and the resources will be used to fuel European expansion and future acquisitions. “We are probably going to acquire something during 2021,” Boden said last year. “Lots of lenders are going to reevaluate their future and we are growing very, very fast.” Starling continued to add customers during the pandemic, as banking activity shifted digital. It also benefited from being one of the institutions partnered with the U.K. government to dole out coronavirus loans. As Starling’s fortunes rise, rival Monzo experiences challenges, with the company’s valuation dropping 40% last year.