Starling Bank acquires accounting startup Ember in sub-£10m deal

Starling Bank has acquired UK accounting software firm Ember, a move aimed at enhancing its small business offerings ahead of upcoming tax reporting changes.

The deal, valued at less than £10 million, includes the transfer of Ember’s co-founders, Daniel Hogan and Aaron Shaw, and its 30 employees to Starling.Founded in 2019, Ember provides automated bookkeeping and tax tools tailored for small businesses and sole traders.

The acquisition aligns with HM Revenue & Customs’ Making Tax Digital (MTD) initiative, which will require quarterly income reporting for sole traders and landlords from April 2026.

By integrating Ember’s technology, Starling aims to streamline financial management for its SME customers, enabling real-time tax compliance and bookkeeping within its banking app.

Ember had raised approximately £3.2 million in seed funding from investors including LocalGlobe and Tiny VC. The platform syncs directly with bank feeds to automate transaction categorisation and VAT reporting, reducing manual input for users.

Starling confirmed that Ember’s services will be rebranded and fully embedded into its business banking interface over the next year. The bank, which holds a full UK banking licence, has not disclosed further details on the transaction.

Separately, media reports have suggested Starling is exploring the purchase of a US bank to support potential expansion into the American market. The bank has not confirmed these reports, and no regulatory filings have been made with US authorities.