Atom Bank, a member of the first cohort of UK-based digital banks, has raised over £100 million in equity from existing investors, including Spanish bank BBVA, private equity firm Toscafund, and Infinity Investment Partners. The round valued Atom Bank at £362 million, down from the previously reported valuation of £435 million at the start of the previous year. The reduced valuation reflects the impact of weakening investor sentiment and rising interest rates on fintech companies as venture capital investment slows and investors prioritize profitability over growth. Atom Bank intends to use the funds to expand its balance sheet and better compete with traditional banks on savings accounts and lending.
Atom Takes Valuation Hit as it Raises £100mn in New Equity