Atom halves valuation in £40 million fund raise

Atom Bank has confirmed a £40 million funding round at 60p a share, halving the bank’s valuation.

The equity raise is just under half the price at which investors acquired shares in 2019, when Atom made £50 million.

The round will be led by Toscafund Asset Management and BBVA.

The bank hasn’t yet reached profitability but expects figures to show that it achieved more than 100bps of Net Interest Margin (NIM) at the end of last month.

The retail bank forecasts that it will have tripled SME lending to over £700 million over the past 12 months.

Atom took over £400m of mortgage applications in the second half of the financial year 2020/21.

“On the back of our best year ever and with really strong momentum baked into the business, this raise will accelerate our progress even further during 2021, and prepare us for the next stage in our growth and development prior to IPO, which we anticipate taking place in the next two years or so,” said Atom chief executive, Mark Mullen.

    Share Story:

Recent Stories

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.