Atom Bank’s Latest Funding Round
In a recent development, Atom Bank, a digital bank based in Durham, has raised £100m in equity funding from its existing investors. Although CEO Mark Mullen previously mentioned the possibility of an IPO in 2024 or 2025, the bank has taken a more cautious stance, stating that a liquidity event is part of its long-term strategy and will happen in the future.
The bank did not disclose its new valuation, but reports suggest that it raised funding at £362m, down from its previous valuation of £435m. Despite this, Atom Bank remains optimistic about its growth prospects.
Continued Growth and Responsible Lending
Mark Mullen, CEO of Atom Bank, emphasized the bank’s commitment to sustainable growth and responsible lending. He highlighted the bank’s compact business model and cost control measures, which have contributed to its success. Mullen also stressed that Atom Bank prioritizes its customers by offering consistently great value and fair treatment.
Investor Backing and Utilization of Funds
Atom Bank’s latest funding comes from its long-term backers, including BBVA, Toscafund, and Infinity Investment Partners. The bank plans to use the funds to accelerate its lending and balance sheet growth while maintaining profitability. Mullen expressed the bank’s goal to provide better outcomes for UK customers and improve the banking industry as a whole.
Strong Financial Performance
In July, Atom Bank reported its first annual profit of £4m for the year ending March 2023. However, the bank has already surpassed that figure, achieving a quarterly operating profit run-rate of over £25m for 2023. This robust financial performance further solidifies Atom Bank’s position in the digital banking sector.