UK challenger Zopa lands £75m funding to fuel growth
UK digital bank Zopa has secured £75 million in a new funding round led by existing investors to drive its next phase of growth.
Zopa raises £75m
The company was reportedly in talks late last year to raise around $100 million ahead of a mooted future public listing.
Zopa says the funding “cements and markedly enhances” its unicorn valuation and will be used to meet the capital requirements of its “growing balance sheet” and to support its M&A endeavours, which could kick off “as early as this quarter”.
The firm secured a full UK bank licence in 2020 and offers peer-to-peer lending services and a range of fixed-term savings accounts. Since its launch, it claims to have attracted £3 billion in deposits and issued more than 400,000 credit cards.
Jaidev Janardana, Zopa’s CEO, says the fresh equity round “reaffirms” the support of investors despite the challenging market environment. He adds that the bank has seen “several” profitable months in 2022, and is “very likely” to convert to a full year of profitability in 2023 for the first time.
Janardana adds the bank’s approach to credit risk means “it has continued to lend responsibly in a changing environment” and as a result, “our business remains resilient”.
