Monday 1 July 2019 6:05 pm

Revealed: Starling Bank chief's stake slides as billionaire backer tightens grip

The chief executive of Starling Bank has lost her position as a major shareholder in the British fintech giant, following a large funding injection in February.

Anne Boden, who founded Starling in 2014, ceased to be a person with significant control in the bank in April, according to filings on Companies House.

A spokesperson for Starling told City A.M. the change was a result of the bank’s series C funding round in February, in which Boden had to dilute her shares in order to accommodate its two investors.

The fintech firm stands out from other tech companies, in that it has eschewed the typical venture capital route and until recently had relied solely on investment from Austrian billionaire Harald McPike.

McPike is the chief executive of Bahamas-based investment fund Quantres. He was the sole backer of Starling Bank’s £48m series A round in 2016.

Merian Global Investors joined McPike as a new backer in February’s round with an investment of approximately £50m, while McPike has invested roughly £75m in Starling.

McPike is now the only person with significant control at Starling. City A.M. understands he now holds roughly a 60 per cent stake in the business, while Boden and Merian both hold less than 25 per cent each.

Starling Bank has raised approximately £233m to date, after its business banking arm was awarded £100m as part of the RBS Remedies Fund.

Starling declined to comment further.