UK-based digital lender Atom bank has announced a £30m investment from existing backers to increase lending and drive business growth.
The investment follows a £75m funding round in February this year and takes the total capital investment during 2022 to more than £100m.
ATOM plans to use the proceeds to support customers such as homeowners, first-time buyers and small and medium-sized businesses.
The lender, which began operation in 2016, said the funding also marks a development in Atom’s future initial public offering (IPO).
Atom bank has no physical branches and its savings, mortgage and loan services are offered through an app.
Atom CEO Mark Mullen said: “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.”
Atom is also in talks with several entities including private equity firms to garner at least £50m in 2023, the Financial Times reported, citing sources.
The additional funds will be raised in the first half of next year and could be the last private capital raise before the bank goes public.
Atom’s IPO plans have been delayed due to volatile market conditions and now the bank plans to launch its IPO in 2024, a source aware of the bank’s plans said.