Digital bank Zopa raises £75m to accelerate growth
Digital bank Zopa has raised £75 million in funding to drive its next phase of growth. Led by existing investors, the deal strengthens Bank Zopa’s unicorn position. This funding will be used to meet Zopa Bank’s growing balance sheet capital requirements and to support mergers and acquisitions that could begin as early as this quarter.
Despite economic uncertainty, London-based Zopa has continued to grow revenue by more than 100% year-over-year, thanks to the continued expansion of its range of tech-focused financial products number.
“Today’s equity round reaffirms the support of our investors despite the challenging economic environment. It is a clear validation of Zopa’s responsible, sustainable, and profitable approach to lending, 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. This has already led to several profitable months in 2022 and will very likely convert into full-year profitability in 2023 for the first time,”
Jaidev Janardana, CEO at Zopa.
Zopa Bank draws on the best of traditional and digital banking, combining its digital capabilities with 17 years of lending experience and £8 billion in approved personal loans. Browser.
Having obtained a UK banking license, Zopa adheres to the same standards as high street banks for customer protection. For example, its deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Since launching in 2020, Zopa Bank has attracted £3 billion in deposits, more than £2 billion in loans on its balance sheet and issued more than 400,000 credit cards. It currently has a rating of 4.6/5 on Glassdoor, one of the highest employee satisfaction scores in the UK FinTech industry.