London-based digital bank Zopa has raised £75m in fresh funding as it aims to accelerate recent growth.
The funding will be used to fuel Zopa’s expansion, bringing the British fintech’s total capital raised to date to a staggering £530m, including £130m that has been raised this calendar year alone. The milestone coincides with Zopa securing its millionth customer.
Since January, the company has launched a regulated buy-now-pay-later (BNPL) product and a smart ISA which allows savers to keep more of their returns. With 18 years’ worth of lending experience, the company has already lent out £8bn in personal loans, attracted £3.5bn in deposits, and issued 470,000 credit cards.
It is now a fully licensed bank in the UK, meaning account holders get certain protections including protection for the first £85,000 of their deposits through the Financial Services Compensation Scheme (FSCS).
Funding is ‘clear validation’ for Zopa
Jaidev Janardana, CEO at Zopa Bank, says: “Today’s financing is a clear market validation of Zopa Bank’s financial performance, pointing to strong investor confidence in its growth and in its ability to deliver strong financial performance despite the economic uncertainty.
“As a profitable business, it is also a seal of approval for our responsible and sustainable business model, our strong unit economics, and our vision to build Britain’s best bank.
“We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories as we get even closer to reaching full-year profitability in 2023 for the first time.”
