Atom bank has announced the completion of a £75 million funding to enable the firm to expand its current offerings. The funding round was led by BBA and Toscafund, as well as co-investors like Infinity Investment Partners. According to the announcement, the funding is still open to other existing shareholders for participation.
Atom Bank Has Now Raised Its Valuation To £435 Million
The latest equity raise is coming after the company completed a £40 million funding round in April 2021, at a discounted price of 60p per share.
The UK-based digital lender has now raised over £115 million, raising its valuation to £435 million. Atom announced its first monthly profit in June last year, following strong growth in Covid-19 related lending.
The digital lending form closed the year with an impressive on-balance sheet lending to small businesses. It reached £1 billion, with both business and mortgaged loans growing by 30%.
Last year, Atom also recorded impressive growth in its customer deposits, reaching £2.5 billion which represents a 16% growth from the previous year’s record. The bank stated that it hopes to grow the deposit base to £2 billion in FY23.
Atom Bank Will Boost Its Growth With The Financial Injection
Chief Executive Officer of Atom, Mark Mullen, commented on the additional funding. He noted that the additional capital will enable Atom to build on the progress it has made so far. It will allow the firm to help those looking to grow their business and own their own home to save for the future, despite the rapidly rising cost.
BBVA is a known name in fintech investments. The company’s participation in the Atom funding round is coming after it invested in the Brazilian digital bank Neon. BBVA also has an interest in Solarisbank, as the company continues its growth strategy of entering new markets and business segments.
Atom says it will be boosting its growth plans using the financial injection. The company is also planning to have an IPO in the future, and the funding will enable the preparation for the public offerings.