Atom Bank secures $121m in equity funding
By Gloria Methri
Atom Bank, the app-based bank in the UK, has raised over £100 million in new equity capital from long-term shareholders BBVA, Toscafund, and Infinity Investment Partners.
This is believed to be the largest private capital raised by a digital bank in the country this year. The funds will be used to accelerate lending following a period of record growth for the company.
Atom recently announced its first full year of operating profit, demonstrating the potential of its cost-efficient and scalable model. The FY23 results saw revenue growth of 62%, customer numbers doubling to 224,000, and savings deposits rising to £6.6 billion.
The capital will enable Atom to accelerate balance sheet growth and create a more compelling proposition for savers, homeowners, first-time buyers, and SMEs. Atom has already loaned more than £4 billion to UK homeowners, and over £1 billion to small businesses since launch, with the funds enabling the digital bank to further ramp up lending activity.
The capital raise process started early this year and forms part of Atom’s long-term strategy to deliver a liquidity event in the future.
Mark Mullen, Chief Executive Officer at Atom, said, “I am delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost.”
“Atom continues to grow strongly and sustainably. We are a cautious bank with an excellent track record of lending responsibly and successfully. We have a compact business model, and we keep tight control over our costs. We look after our customers by offering them consistently great value and treating them fairly.”
“This money will be put to work to drive growth and to fuel the development of our franchise. UK customers need better outcomes and better banks. Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone.”
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