Atom Bank to raise GBP 40 mln ahead of 2022 IPO

The digital bank said it has not yet completed the raise, but that the fresh capital would come from existing investors and will be used to help support its mortgages and business lending, with an IPO now on the cards for 2022. Despite announcing the raise, Atom has yet to seal the deal on the fundraise, with early reports of a GBP 150 million funding round in 2020 clearly having been downsized. 

To date, Atom has raised around GBP 450 million and has even considered the idea of a BBVA takeover before the Spain-based bank pulled out of the deal as it pivoted away from fintech. The digital bank also raised cash from the Woodford Patient Capital Trust. Woodford Patient Capital Trust ceased operations just three months later before being taken over by Schroders. 

In the second half of the current financial year, Atom Bank has added GBP 362 million of mortgages to its portfolio and has loaned a total of GBP 2.8 billion to its mortgage customers since 2016. The digital challenger also opened its Instant Saver account to the public in September 2020 and has already seen deposits reach GBP 600 million, adding to the GBP 1.7 billion held in its fixed savings rate accounts.