Financial services firm BBVA led a £149m ($207m) funding round for UK-based mobile banking platform Atom Bank yesterday with an investment of approximately $119m.
Asset manager Toscafund provided approximately $76m as part of the round, which increased BBVA’s share of Atom to about 39%. Undisclosed existing shareholders also participated.
Founded in 2014, Atom has launched a banking service without physical branches that is designed to be accessed through a user’s mobile device. Customers can open a savings account or secure a mortgage through the app.
The company has lent more than £1.2bn to homeowners and businesses in the UK and taken some £1.3bn of deposits since it commenced operations in April 2016, 10 months after securing its banking licence.
Atom said in a press release announcing the funding that it has now raised a total of almost £400m in equity capital, though it has not revealed details of all that funding.
BBVA invested $68m to lead a $124m round for the company in 2015 that also featured Polar Capital, Marathon and existing investors Toscafund and Woodford Investment Management.
Atom added $102m in a March 2017 round led by a $102m contribution by BBVA, with participation from existing backers including Woodford and Toscafund.
Mark Mullen, chief executive of Atom, said: “We are very proud of what we have achieved in the Atom journey to date and we are excited about our plans for the future.
“This further significant injection of capital secures the bank’s place as a disruptive force in the mainstream of UK banking. We will continue to invest in growth, in our technology and in our products as we continue to push ahead with the support of our investors.”