UK-based challenger bank Atom bank has pulled in £149m in its latest round led by BBVA and Toscafund.
BBVA will invest £85.4m in to the bank, which will increase its ownership to around 39 per cent, and Toscafund will inject £54.4m, also increasing its share. The remaining capital came from unnamed existing investors to Atom.
Founded in 2014, Atom is a mobile banking app which is designed entirely for digital use, offering personal and business products for those in the UK. To date, Atom has taken £1.3bn of deposits and financed more than £1.2bn to SMEs and homeowners across the UK.
Equity from the round will be used to foster its growth as a lender, as well as investing into its technology and business capabilities.
Atom bank CEO Mark Mullen said, “This further significant injection of capital secures the bank’s place as a disruptive force in the mainstream of UK banking. 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.”
The company has nearly raised £400m in equity financing since its launch in 2014, from investors including BBVA, Woodford Investment Management and Toscafund Asset Management. The last funding round was a £30m Tier 2 capital facility from British Bank Investments, last year to support its continued growth.
Toscafund took part in the £154m investment into fellow UK-based challenger bank OakNorth, last year. The company raised the funds to support the launch of its new SME banking solution ACORN.
Last year, Atom also received an £83m equity investment from its shareholders. This investment made it one of the largest FinTech investments in the UK last year.
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