Starling founder has offloaded her remaining stake in the UK fintech at a valuation far below the price the firm was targeting in its latest secondary share sale.
Anne Boden has sold her remaining 2.7 per cent stake in Starling as she begins work on a new AI project. She sold the stake at a valuation of just £1.7bn, according to Sky News, marking a far cry from the £4bn Starling sought in a secondary share sale last year.
City AM revealed earlier this year that Boden, who launched Starling in 2014 after stints at Allied Irish Bank (AIB) and Lloyds, had reduced her stake to 2.7 per cent from 4.3 per cent before the sale.
The fintech founder departed Starling as chief executive in May 2023, with reports later stating the latter’s exit followed a clash with investors over fund manager Jupiter’s decision to sell its stake at a below-valuation price the year prior.
Boden’s decision to step down came after she decided her position as a chief executive was being unduly influenced by her concerns as a shareholder, reports at the time suggested.
Starling founder working on new project
Last month, Boden began recruiting software engineers for a project named ‘Moonshot’. She said she was seeking engineers who had a background in banking technology “who are excited about what the future could like”.
The cut valuation sale will add to investor concerns after Starling’s earnings slid over the last year. The firm posted a £217m pre-tax profit, down three per cent from the £223m secured in the prior year.
This came as revenue slipped 5.6 per cent to £887m, with the Bank of England’s declining base rate cited as the main headwind. Rates dropped by an average 91 basis points over the year, which led to interest income falling £52.5m to £759.2m.
Starling also pointed to its £20m investment in its software-as-a-service arm Engine as a reason for the fintech profit to slip.
A Starling spokesperson said: “Our founder has sold her remaining shares in Starling privately to several existing shareholders. This has been done with the company’s full knowledge and we wish her every success with her new venture.”
Boden was approached for comment.