A Durham app-based bank has announced that it is launching a £40m fundraise as it moves to aim for profitability.
Atom, the UK’s first app-based bank, is to raise £40m from existing shareholders as it moves to profitability from its mortgage and business lending within a year, and to IPO the year after.
The bank has said that its revenues are growing “strongly” and that it will have grown lending to SMEs on its balance sheet to more than £700m by the end of March 2021, a tripling of business loans in the last 12 months.
It has also said that it is aiming for an IPO and predicts that it will achieve this in the financial year 2022/23.
Mark Mullen, CEO at Atom, commented: “We think of Atom as an exceptionally engaging and efficient banking machine that helps and supports customers to own their homes or build their businesses.
“We’ve been there for new and existing customers during the pandemic, and in a year when we have held our operating costs constant I’m delighted that we have coupled substantial income growth with an enviable record of customer experience.
“We turn to our shareholders for capital as and when we need it to drive growth. Despite it being a difficult environment for all companies that need to raise funding, this capital raise will allow us to continue to progress towards profitability and ever-improving levels of efficiency and engagement.
“The team retains an IPO as our objective and we’ll take the business there when we and the markets are ready.
“After the year that’s just gone I’m not going to claim perfect foresight, but we’re looking at the financial year 2022/23 as our IPO target.”
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