Atom picks up funding on its way to IPO

UK app-based bank Atom has raised more than £75m in new equity priced at 70p per share as it continues to grow and strive to go public.

The raise will be led by BBVA and by Toscafund with co-investors Infinity Investment Partners, and is now being opened to other existing shareholders. This follows a £40m raise in April 2021.  The Durham-based digital lender has now raised more than £115m in the last 12 months.

Launched in 2016, Atom offers fixed saver accounts and secured business lending for small and medium sized enterprises (SMEs).

Atom said its focus on lending has really come to fruition in the last 9 months, with both mortgage and business loans having grown by 30%.

In 2021 Atom passed £3bn of mortgage completions, with applications for its digital loans peaking at £315m in Q3.  Atom’s on-balance sheet lending to small businesses also surpassed £1bn during 2021.

In November Atom became the largest company in the UK to introduce a four-day working week, with no loss of pay, for its team. Atom has since seen a 500% increase in job applicants, and substantial increases in staff engagement.

Mark Mullen, CEO at Atom, said, “This capital will allow Atom to build on the progress we have made, and to keep offering real competition for people who want to own their own home, grow their own businesses and – at a time of rapidly rising costs – save for the future.  It is also a fundamental next step on our journey toward IPO.”

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