App-based bank Atom has raised a further £30 million from its investors and says a stock market flotation is still in the pipeline.

BBVA, Toscafund and Infinity Investment Partners are to add a further £30m in equity to the Durham-based neobank’s balance sheet following its £75m raise in February.

Atom, which has now raised more than £100m in the last 12 months, says it will continue to support its lending customers – homeowners, first-time buyers and SMEs – during the UK recession.

Despite falling public markets, it stated: “It is also another positive step in Atom’s plans for growth and a future public markets listing.”

It initially mooted an IPO in February 2021, with a target of the ‘financial year 2022/23’.

The company says growth in both lending and retail deposits has driven a significant increase in net interest income in 2022, while it has delivered positive operating profit.

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“I’m delighted that the bank’s continued success means that BBVA, Toscafund and Infinity Investment Partners have added to their stake in Atom, and taken new capital investment during 2022 to over £100m,” said CEO Mark Mullen. 

“Our prudent, secured lending model, backed by award winning retail savings allows us to make the very most of capital to support income growth and boost customer numbers. This will remain our focus.

“This year has been one of continued progress and development at Atom. 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.”

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