Atom, the UK’s first app-based bank, has raised more than £75 million in new equity as it continues to grow its profitability and drive to IPO. 

The raise will be led by BBVA and by Toscafund with co-investors Infinity Investment Partners, and is now being opened to other existing shareholders. 

The Durham-based digital lender has now raised more than £115m in the last 12 months.

Atom has placed a focus on lending in the last nine months, with both mortgage and business loans growing by 30%. 

In 2021 Atom passed £3 billion of mortgage completions, with applications for its digital loans peaking at £315m in Q3. Its on-balance sheet lending to small businesses also surpassed £1bn during 2021.

The bank delivered its first monthly operating profit during Q2 2021 and says it has continued to grow its revenues throughout the year while maintaining a tight control on its costs.

In November Atom became the largest company in the UK to introduce a four-day working week, with no loss of pay, for all of its team. Atom has since seen a 500% increase in job applicants, and substantial increases in staff engagement.

Diverse talent key if non-London tech companies are to level up

“It has been a year of excellent progress for Atom. We’ve achieved a number of important financial milestones, maintained our excellent reputation with our customers and with the introduction of our shorter four-day working week, we’re pioneering the future of work,” said CEO Mark Mullen.

“Our investors are now backing our continued growth. This capital will allow Atom to build on the progress we have made, and to keep offering real competition for people who want to own their own home, grow their own businesses and – at a time of rapidly rising costs – save for the future. 

“It is also a fundamental next step on our journey toward IPO.”