Introduction
In a sign that Atom Bank’s IPO may be even further away than initially anticipated, the Durham-based digital bank today raised £100m in equity funding from its existing investors. While CEO Mark Mullen said last November that a “liquidity event” was on the cards for 2024 or 2025. With the raise today the bank was more cautious simply saying that such an event remained part of its “long-term strategy” and would happen “in the future.”
Existing Investors Provide Fresh Funding
The fresh funding today comes from the bank’s long-term backers BBVA, Toscafund and Infinity Investment Partners. Atom said the money will be used to accelerate the bank’s lending and balance sheet growth, with the bank continuing to operate profitably.
Positive Financial Performance
In July Atom Bank announced its first annual profit of £4m for the year to March 2023, today the bank announced that it has already eclipsed that figure for 2023 with a quarterly operating profit run-rate of over £25m.
Future Strategy
“This money will be put to work to drive growth and to fuel the development of our franchise. UK customers need better outcomes and better banks. Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone,” Mullen said.
