Atom Bank Secures £100 Million in Equity Funding

Atom Bank, the Durham-based digital bank, has successfully raised £100 million in equity funding from its existing investors, including BBVA, Toscafund, and Infinity Investment Partners. This financial injection will be directed towards accelerating the bank’s lending activities and boosting its balance sheet growth. Atom Bank CEO Mark Mullen emphasized the institution’s steady growth and the responsible lending practices it has upheld, which have allowed it to maintain a compact business model and control costs effectively.

Despite not specifying a new valuation, it is reported that Atom Bank’s funding round has placed the bank at a valuation of £362 million. This figure marks a decrease from the £435 million valuation the bank held earlier in the year.

Mullen underlined the bank’s ongoing commitment to its vision of revolutionizing banking for the better and delivering improved outcomes to UK customers. This capital will be essential for furthering the bank’s development and enabling it to continue on its profitable trajectory.

Atom Bank has recently reached notable milestones, with its first annual profit of £4 million announced in July. It has already exceeded this figure for 2023, boasting a quarterly operating profit run-rate exceeding £25 million. The bank’s growth is also reflected in its lending activities, with £4 billion loaned to UK homeowners and over £1 billion to small businesses since its inception in 2013.

While the funding round has led to a reduction in Atom Bank’s valuation, it remains determined to strengthen its position in the financial industry. Atom Bank is considering an initial public offering (IPO) and is focused on achieving maturity, stability, and predictability to ensure a successful public listing in the future.

This latest funding is part of the bank’s ongoing strategy to drive growth, boost lending capacity, and continue its mission to offer UK customers superior banking solutions. Atom Bank is poised to play an active role in the evolving fintech landscape, and this capital injection aligns with its long-term objectives.