Atom Completes £85m Fund Raising With Stake From BBVA

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Atom has completed its primary £85m capital fund raising with a strategic partnership with BBVA.

Atom, the UK’s first digital bank, will be on the receiving end of a £45m injection from BBVA in return for a 29.5% stake.

The Atom banking app has yet to be launched (it’s undergoing live trials), but a Beta version is likely to be let out for a run with the public early next year says the company.

BBVA is perhaps unsurprisingly a major player in the Fintech sector. Its BBVA Ventures fund has to date invested over $100m in a number of Fintech businesses. And, back in 2014, BBVA acquired Simple (a company based in Oregon, US), which aims to change the way people bank in America.

Atom’s CEO Mark Mullen said: “We have long admired BBVA’s vision and leadership. Like us, BBVA firmly believe in the power of technology to transform customer’s lives for the better. We share their commitment to place the interests of customers at the heart of everything that the bank does, and the shared values and relationship between us that has built up over months of interaction have been critical to knowing that they are the strategic partner for Atom. It is a huge vote of confidence in our team, business model and indeed the future of competition in UK banking that BBVA are coming on this journey with us.”

Chairman Anthony Thomson chipped in with: “Atom has now raised over £135m in the 18 months since the founding team came together. This is a great response from investors to the compelling business case that the team has put together, and is a powerful signal to the regulators and most importantly for UK consumers. We have kept our app to ourselves so far to protect the innovation and IP that it is built on. Having seen it in operation I believe it will transform banking in the UK and beyond and with BBVA as our strategic partner we really do feel that the sky is the limit for Atom.”

Not to be outdone, BBVA’s Chairman and Chief Executive Francisco González adds: “BBVA believes the UK offers excellent growth opportunities and that digital banks that put the customer first are the future. BBVA’s investment in Atom backs those beliefs in one move.”

Woodford and Toscafund, existing core investors, are maintaining their positions as lead shareholders, as our institutional investors Marathon and Polar Capital.

Advising Atom on the fund raising has been Canaccord Genuity and another key adviser to Atom is Bond Dickinson LLP.