Atom Bank has received £83m in funding from shareholders as it readies to launch a range of new products and boost its growth.
With this round, the UK-app based bank brings its total amount of funding raised to date to £219m.
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.
The news comes after challenger bank Monzo announced a £19.5m Series B with a pre-money valuation of £65m earlier this month.