Atom Bank raises £30m as it pushes back IPO plans

Atom Bank IPO

UK fintech Atom Bank has raised an additional £30m from previous investors as it pushes its timeline back to 2024 or 2025 for an IPO or “liquidity event”.

Durham-headquartered Atom said it has agreed terms with two of its biggest shareholders – BBVA and Toscafund – along with previous backer Infinity Investment Partners for the £30m equity investment.

The latest funding gives Atom a pre-money valuation of £460m and follows a £75m funding round back in February.

At the time, Atom Bank said it was gearing up for an IPO that was “likely” to take place in 2023.

However, those plans appear to have been shelved amid rising interest rates and a looming recession.

A spokesperson for Atom told UKTN that a liquidity event next year or the year after “could be an initial public offering on the stock market or a trade sale”.

Atom said it will use the latest capital injection to fuel further lending and drive growth.

“This year has been one of continued progress and development at Atom,” said Mark Mullen, founder and CEO 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.”

Launched in 2016, the digital lender has no physical branches and is accessible via a smartphone or tablet and has received a full UK regulatory licence.

A potential SPAC merger in May saw the Durham-based startup eyeing a listing in New York, however, the deal was called off and the company once again began considering listing in London.

Late last year Atom moved its staff to a four-day work week without cutting pay, which the company has since said boosted staff retention and productivity.

Atom said that it has now moved into operating profit and seen strong growth in lending and retail deposits.

This week Atom’s chief financial officer David McCarthy was poached by rival fintech Tandem.