UK neobank Atom raises more than $100 million as it eyes an IPO

Neobank Atom has raised a round of more than $100 million led by Spanish banking group BBVA and investment manager Toscafund, according to a press release. The round values the neobank at $590 million and is a significant step toward its public listing says the company. 

Atom is part of a cohort of European challenger banks that emerged in the aftermath of the financial crisis. They have continued to attract investor attention with Monzo netting a $500 million raise in December at a valuation of $4.5 billion and Revolut raising $800 million at a valuation of $33 billion in July.

Compared to Monzo and Revolut, Atom is known for its focus on the lending market. The bank says it passed more than $4 billion in mortgage completions and over $1 billion in lending to small businesses in 2021. 

“Our investors are now backing our continued growth,” said CEO Mark Mullen in a statement. “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.”

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