By Ryan Weeks on Wednesday 7 March 2018
The latest fundraise sees existing investors increasing their stake in the neo-bank.
Atom Bank has raised yet more money. Cornerstone investors BBVA and Toscafund have led a £149m fundraise for the neo-bank.
BBVA will invest a massive £85.4m, increasing its stake to around 39 per cent, subject to regulatory and shareholder approval. Toscafund has committed £54.4m, also upping its ownership. A number of other existing shareholders are also supporting the raise.
Atom is one of a number of rapidly-growing digital banking disruptors in the UK. Its rivals include the likes of Monzo, Tandem, Starling and Revolut. Each of these competitors have raised vast sums of money, but none more so though than Atom, which has now raised close to £400m in equity capital.
Its biggest investor, BBVA, is a multinational Spanish banking group with more than 8,000 branches worldwide. Toscafund is an asset manager with over $4bn under management.
Atom Bank first opened to customers in October 2016 and claims to be the first bank built exclusively for mobile usage.
This latest bout of fundraising will be used to further its growth and to fund continued investment in its technology and business capabilities.
“This further significant injection of capital secures the bank’s place as a disruptive force in the mainstream of UK banking,” said CEO Mark Mullen (pictured). “We will continue to invest in growth, in our technology and in our products as we continue to push ahead with the support of our investors.”
To date, Atom has taken in £1.3bn in deposits, and has lent over £1.2bn to SMEs and homeowners in the UK. The bank has around 300 permanent employees and boasts a perfect 5/5 Trustpilot score.
