UK’s Atom Bank raises €114M from existing investors at lower valuation: Know more

Durham-based Atom Bank, an app-based bank, announced on Wednesday that it has raised over £100M (approximately €114M) in new equity capital from long-term shareholders BBVA, Toscafund, and Infinity Investment Partners. 

The capital infusion will enable UK’s Atom to accelerate balance sheet growth and create an even more compelling proposition for savers, homeowners, first-time buyers, and SMEs, which is faster, easier, and better value than competitors and the high street banks. 

To date, Atom Bank has already loaned more than £4B to UK homeowners, and over £1B to small businesses since launch. 

Mark Mullen, Chief Executive Officer at Atom, says, “I’m delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost.”

Atom Bank received new funding, valuing the company at £362M (approximately €415M), according to the report. This is down from the £435M valuation it received in February 2022.

Atom Bank: Changing bank for good

Founded in 2014 and led by Mark Mullen (CEO), Atom is an app-based bank that’s on a mission to make the experience of borrowing and saving faster, simpler, and better value than anyone else.

It is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA.

The Atom bank is targeting industry-leading cost efficiency and returns as it aims for significant growth.

Atom recently announced its first full year of operating profit, demonstrating the potential of its cost-efficient and scalable model. 

The FY23 results saw revenue growth of 62 per cent, customer numbers doubling to 224,000, and savings deposits rising to £6.6B.

Atom has surpassed the operating profit figure for the current financial year. The current quarterly run-rate is generating over £100M of annualised net interest income and more than £25M of operating profit.

“Atom continue to grow strongly and sustainably. We are a cautious bank with an excellent track record of lending responsibly and successfully. We have a compact business model and we keep tight control over our costs. We look after our customers by offering them consistently great value and treating them fairly,” says Muller. 

The bank also has industry-leading levels of customer service, with TrustPilot, iOS, and Android ratings of five stars and an NPS score in the high 80s.

“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,” he says.