Atom Bank Receives £75 Million in Funding

UK’s app-based bank, Atom Bank announced today that that company has raised a total of £75 million to expand its operations. The funding round came after Atom Bank saw a sharp surge in customer deposits during 2021.

The recent funding round, which was led by BBVA, Toscafund and Infinity, has pushed the valuation of Atom Bank higher. BBVA has been supporting Atom Bank for the last few years. With the latest investment, BBVA has become the main shareholder of the company.

The announcement from BBVA came a few days after the Spanish financial services giant agreed to invest $300 million in Neon, a prominent Brazilian digital bank. Through investment in Atom Bank, BBVA has accelerated its digital strategy.

“It has been a year of excellent progress for Atom. We’ve achieved a number of important financial milestones and maintained our excellent reputation with our customers. Our investors are now backing our continued growth. This capital will allow Atom to build on the progress we have made, and to keep offering financial solutions for people who want to own their own home, grow their own businesses and save for the future. It is also a fundamental next step on our journey toward IPO,” Mark Mullen, the CEO of Atom, commented.

IPO Plans

Atom termed the funding round an important step towards the company’s future initial public offering (IPO) plans. In 2021, Atom saw a surge of nearly 16% in customer deposits as the number reached £2.5 billion. Last year, lending to small businesses surpassed £1 billion.

“With this financial reinforcement, Atom intends to boost its growth plans and progress toward its future IPO, as it announced last year. The mobile bank has raised capital totaling £115 million in the last year, factoring in the previous £40 million round, which closed in April 2021. Atom has differential lending capabilities which have really come to fruition in the last 9 months, with both mortgage and business loans have grown by 30%,” the company mentioned.