Digital bank Zopa raises £75m to accelerate growth

By Gloria Methri

Digital bank Zopa has raised £75 million in funding to drive its next phase of growth. Led by existing investors, the deal cements Zopa bank’s Unicorn status. The funding will be used to meet the capital requirements of Zopa bank’s growing balance sheet, and to support M&A dealmaking that could kick off as early as this quarter.

Despite the economic uncertainty London-based Zopa continues to grow revenue by more than 100% YOY, fuelled by the continued expansion of its suite of digital-first financial products.

Jaidev Janardana, CEO at Zopa said, “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,” he added.

Zopa bank draws on the best of both digital and legacy banks, combining its digital capabilities with 17 years of lending experience and £8 billion in personal loans approved.

Having gained a banking license in the UK, Zopa is held to the same standards as major high-street banks in terms of customer safeguarding. 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 across the UK FinTech industry.