UK challenger bank Atom raises £75m as it heads toward IPO
Atom, the UK’s first app-based bank, has raised more than £75 million in new equity priced at 70p per share.
“It is a fundamental next step on our journey toward IPO [initial public offering],” says CEO Mark Mullen.
The raise was led by existing investors BBVA and Toscafund with co-investors Infinity Investment Partners, and is now being opened to other existing shareholders.
The announcement follows a £40 million raise last spring (which saw its valuation halve compared to 2019).
Atom offers lending and savings products. It says its focus on lending “has really come to fruition” in the last nine months, with a 30% growth in both mortgage and business loans.
In 2021, it passed £3 billion of mortgage completions, while its on-balance sheet lending to small businesses surpassed £1 billion. Its total customer deposits grew by 16% to £2.5 billion in 2021.
Also, the bank delivered its first monthly operating profit during Q2.
In November, Atom became the largest company in the UK to introduce a four-day working week with no loss of pay for its entire team. It has since seen a 500% increase in job applicants and substantial increases in staff engagement, the bank says.
“We’re pioneering the future of work,” Mullen states.
Atom opened for business in April 2016. It is based in Durham, in the Northeast of England. It employs 400+ people.