The UK's Atom Bank is plotting a £150 million share sale to see it through the pandemic, with an eye on pursuing an IPO in 2022.
Launched in 2016, the UK digital-only bank has taken £1.8bn in customer deposits and lent £2.4bn.
But the company is facing downward pressure on margins as competition heats up in the mortgage business. The Covid-19 outbreak is also highlighting the fragility of the new breed of digital-only lenders, as potential investors downgrade expectations and valuations in a challenging business environment.
BBVA, which owns 40% of Atom Bank, recently passed up the opportunity to exercise an option to take full control of the bank.
"Sources" have told Sky News that Atom Bank is considering raising between £50m and £150m through the share sale in the Autumn, depending on demand, as it seeks to keep the business on an even keel.