UK’s Atom Bank raises another $206M led by BBVA for millennial and SMB financial services

Atom Bank, a startup formed out of Durham, England that operates a mobile-only bank targeting consumers between a ages of 18 and 34, has lifted another large turn of funding. The association now announced another £149 million ($206 million) in appropriation to double down on a existent business — focused now on assets accounts, mortgages and tiny business loans — as good as to build out some-more products for a future.

As with a prior several rounds, this latest investment was led by BBVA, a Spanish bank that has corroborated a series of fintech startups, and acquired Simple in a US several years ago to assistance mangle into North America.

BBVA itself accounted for £85.4 million of this latest turn and now has a 39 percent share of a bank. Notably, a association has reliable to me that BBVA will not be rising a takeover offer for Atom Bank.

Under UK law, if a association takes a 30 percent or aloft share, it triggers a regulatory requirement for a shareholder to make a imperative takeover offer. “BBVA have sought and been postulated accede from a Taveover Panel to possess some-more a 30% of a bank though carrying to make a bid to buy Atom,” a orator reliable to us.

Toscafund is investing £54.4 million and is also upping a interest in the bank.

The association has not disclosed a valuation, though formed on a calculations — a prior appropriation of $102 million a year ago valued it during $320 million — this turn will value a association during during slightest $526 million if it’s anything other than a down round. BBVA records that a 39 percent interest equates to £167 million. Doing a true math on that brings a sum gratefulness to $593 million (£428 million).

Atom has really grown in a final year, when it was reduction than a year aged (it launched in Apr 2016, and was founded in 2014). The association — that interfaces with business around a web though also through iPhone and Android apps — says it now has £1.3 billion in deposits, and it has loaned £1.2 billion in a form of mortgages and SMB loans.

“Atom is a fast growing, desirous and colourful business that is founded on a singular fit of a shareholders, a group and a partners,” said Bridget Rosewell, Atom bank’s chair, in a statement. “I am gay that a investors have motionless to behind the bank with such a poignant injection of collateral to fuel a goal to change banking permanently for a better.”

Atom has now lifted tighten to £400 million, with other investors in a past including Anthemis Group and Woodford.

The startup is drumming into an ongoing clever strain for fintech out of a UK, and privately in a new call of startups that have been building banking infrastructure for younger adults and others who are looking for alternatives to some-more normal banks — that can have some-more toilsome mandate for doing business by comparison. Others also competing opposite Atom in Europe include Monzo, Starling, Tandem and N26.

“We are really unapproachable of what we have achieved in the Atom journey to date and we are vehement about a plans for a future,” pronounced Atom bank’s CEO, Mark Mullen. “This serve poignant injection of collateral secures the bank’s place as a disruptive force in a mainstream of UK banking. We will continue to deposit in growth, in a record and in a products as we continue to pull forward with a support of a investors.”

Featured Image: Mario Gutiérrez/Getty Images

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Posted by on Mar 7 2018. Filed under Europe. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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