With this fifth round, the investor BBVA will own about 39% of the challenger bank but denies that a takeover offer is in the cards
CEO Mark Mullen has lead Atom Bank through another successful round.
Photo credit: Atom Bank.
Despite only being created in 2014, Atom Bank can be considered the grand old man of UK challenger banks. Since the fintech startup first disrupted traditional banks’ business models with its app-based services, many other entrepreneurs have followed in its wake. However, Atom Bank attempts to leave the competition far behind with its latest round.
In its fifth funding round to date, Atom Bank has raised an impressive £149m and brought its total money raised so far to £369m. BBVA, the Spanish banking group, spearheaded this latest influx of capital by injecting £85.4m into Atom Bank, which meant it now owns roughly 39% of the startup. Usually UK law would force BBVA to make a mandatory takeover offer. However, the investor has a waiver from the other shareholders and Britain’s Takeover Panel and therefore won’t need to do make a bid for the whole company. Several of Atom’s other shareholders also chipped in for this round.
Having already taken £1.3bn of deposits and loaned over £1.2bn to SME businesses and homeowners in the UK to date, it’s no secret Atom Bank has already achieved significant results despite its young age. Now the startup plans to use the new money to double down on its achievements by perfecting its technology and keep investing in growth.
Commenting on the round Mark Mullen, CEO at Atom Bank, 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.”
Given London is famous for its fintech scene, it’s hardly surprising that the new wave of challenger banks is sweeping the nation. With Atom Bank’s latest round and as the majority of the traditional finance industry is increasingly looking to cooperate with startups it certainly seems as if the future of banking has come to stay.