UK digital-only Atom Bank has raised £149 million in a funding round which sees BBVA invest a further £85.4m in the startup, raising its stake to 39%.
Launched in 2016, Atom has secured £1.3 billion in deposits for its market-beating savings account and lent over £1.2 billion through residential mortgages and business loans. Unlike other mainstream challenger banks, Atom has so far shied away from the current account market, citing regulatory pressures.
BBVA bought a 29.4% stake in Atom for £45 million in November 2015 as part of a strategy to invest in hot neo-banking startups across the globe. The latest round, co-led by BVVA, cornerstone investors and Toscafund, brings the total invested by BBVA into Atom Bank to £167m.
BBVA CEO Carlos Torres Vila, said: “Atom is progressing extremely well and we continue to support the company. We are fully aligned with the vision of banking that Atom is pursuing, and the disruption it is already bringing to the UK financial services sector.”
Atom says the fresh capital injection will be used to roll out new products and services, building on the opportunities created by the introduction of Open Banking and PSD2.
CEO, Mark Mullen says: “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.”