BBVA, together with Toscafund and Infinity Investment Partners, has led the round, which is still open to other shareholders of the company
Atom's headquarters at the UK. (Credit: Banco Bilbao Vizcaya Argentaria, S.A.)
UK-based digital-only challenger bank Atom has raised more than £75m in new equity, ahead of a potential public offering planned for the next year.
The financing round brings the company’s total valuation to £435mn.
BBVA, together with Toscafund and Infinity Investment Partners, has led the round, which is still open to other shareholders of the company.
The Spanish bank has been a shareholder of Atom project and team since 2015 and is currently the majority shareholder in the company with a 39% stake.
Atom bank intends to use the financing to boost its growth plans and progress toward its future IPO, as announced last year.
The app-based mobile bank has previously raised a total capital of £115m last year and has raised £40m in the previous financing round closed in April 2021.
Atom CEO Mark Mullen said: “It has been a year of excellent progress for Atom. We’ve achieved a number of important financial milestones and maintained our excellent reputation with our customers. Our investors are now backing our continued growth.
“This capital will allow Atom to build on the progress we have made, and to keep offering financial solutions for people who want to own their own home, grow their own businesses and save for the future. It is also a fundamental next step on our journey toward IPO.”
Atom said that it has differential lending capabilities, where both its mortgage and business loans have grown by 30% in the last nine months.
Last year, the company has achieved mortgage completions worth £3bn and its lending to small businesses also exceeded £1bn during the period.
In addition, Atom’s total customer deposits were increased by 16% to £2.5bn last year, where savings worth £1bn were held in Atom’s Instant Saver.
Atom intends to use the current investment to increase its deposits by an additional £2bn in FY23, and bring more value and competition to the savings market.
BBVA’s new investment in Atom follows its recent investment in Brazil’s Neon, entry into Italy through a fully digital retail bank and a minority stake in Solarisbank.