UK digital challenger bank Atom has landed £149 million in its latest wave of financing, led by investors BBVA and Toscafund, who will both increase their shareholdings.

Spanish banking group BBVA will invest a further £85.4 million in Durham-based Atom, raising its ownership to around 39 per cent, subject to regulatory and shareholder approval. Toscafund will also contribute £54.4 million and up its stake in the bank.

Atom said that the latest round of financing would secure its rapid growth as a lender and fund further investment in technology and business capabilities. To date, Atom has taken £1.3 billion of deposits and loaned over £1.2 billion to SME businesses and homeowners in the UK.

Mark Mullen, Atom Bank’s CEO, said: “We are very proud of what we have achieved in the Atom journey to date and we are excited about our plans for the future. This further significant injection of capital secures the bank’s place as a disruptive force in the mainstream of UK banking. We will continue to invest in growth, in our technology and in our products as we continue to push ahead with the support of our investors.”

BBVA’s CEO, Carlos Torres Vila, added: “Atom is progressing extremely well and we continue to support the company. We are fully aligned with the vision of banking that Atom is pursuing and the disruption it is already bringing to the UK financial services sector.”

Since its creation in 2014, Atom has raised almost £400 million of equity capital through the support of private and institutional investors. It now has a workforce of around 300 permanent staff and specialises in fixed savings accounts, mortgages and loans.

Music star will.i.am joined the challenger bank as a ‘strategic board advisor’ last year, but Atom’s founder, Anthony Thompson, announced this January that he would be quitting as chairman to focus on other ventures.

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