BBVA, Toscafund, and Infinity Investment Partners have agreed to invest £30 million in Atom Bank as the UK digital lender readies itself for a 2024 initial public offering.
Atom Bank previously raised £75 million in February, making their funding for this year total £105 million. The new funds will be used to fuel further lending.
The bank says the raise is a "positive step in Atom's plans for growth and a future public markets listing". Atom has long-planned to go public but increasingly tough market conditions have forced it to delay a listing on the LSE until at least 2024.
According to the Financial Times, citing sources, the digital lender is now planning one last private raise of about £50 million in the first half of next year ahead o the float.
Mark Mullen, CEO of Atom Bank, stated: “This year has been one of continued progress and development at Atom. In recent weeks we surpassed £4.5bn in retail deposits having made waves with the pricing of our fixed and instant savers, opening up a void between banks such as Atom that pay a fair return on savings and those that are simply unresponsive to the market.
"Alongside continued growth in our mortgage and business lending books, the bank is proving that our clear focus on being fast, easy, and value for money is something that will keep benefiting both our customers and shareholders.”
Earlier this year, Atom experimented with the four-day work week and concluded that it was a success for employees post-pandemic, observing a boost in productivity and employee satisfaction.