Atom Bank has received £83m in funding from shareholders as it readies to launch a range of new products and boost its growth.
Investors included Spanish bank BBVA, fund manager Neil Woodford and Toscafund Asset Management.
With this round, the UK-app based bank brings its total amount of funding raised to date to £219m.
Speaking about the raise, Anthony Thomson, Atom Bank’s founder and chairman, said: “Our customers benefit from the backing of highly reputable investors who are supportive of what we are doing.”
Founded in 2014, the company is now valued at £261m according to TechCrunch.
The raise comes after it surfaced that musician and tech enthusiast Will.i.am was expected to sign a deal with the company to act as a board advisor.
As part of the partnership, Will.i.am would, according to Sky News, receive company shares.
Other Anthemis Group, Chris Adelsbach and Polar Capital Holdings have invested in the company in the past.
The news comes after challenger bank Monzo announced a £19.5m Series B with a pre-money valuation of £65m earlier this month.