Jupiter Fund Management is set to sell a seven per cent stake in Starling Bank at a significant discount on the digital bank’s most recent valuation of £2.5 billion, according to Sky News.
Jupiter is in talks with existing Starling investors about offloading the stake for around £100 million, with a deal set to be finalised within weeks, says Sky, citing sources. Goldman Sachs is reported to be one interested buyer.
The sale would value Starling at around £1.5 billion, a billion pounds down its valuation at an internal fundraise in April.
Last month, Sky reported that Jupiter was looking to sell off its entire 10% stake in Starling for around £200 million.
Starling turned a £32m profit for the last financial year, marking its first full year of profitability.
However, the fintech sector has seen a host of big names – including Klarna and Stripe – see their valuations plummet over recent months.