British digital bank Zopa has successfully raised $85 million

Britain’s innovative digital bank Zopa has secured funding of €80 million, or approximately $85 million, in a new equity round to drive its next growth phase and expand its range of financial products. The funding comes at a time when Zopa is prepping for major business strides in the coming years, including launching a flagship current account in 2025. The bank also aims to double its profit and record a 35% annual revenue growth in 2024.

Zopa’s chief executive, Jaidev Janardana, said he was thrilled to have the investment, as it would be instrumental in increasing its customer base and product range. The bank wants to be the primary financial home for millions of U.K. consumers, providing them with different types of banking services. The extra capital will fuel Zopa’s market expansion, acquisition, and integration of GenAI into its platform.

Zopa, since it was launched in 2020, has significantly performed in the financial services sector. Being a licensed bank, today Zopa holds £5 billion of deposits and £3 billion of loans. The use of innovative technology to support a customer-centric strategy positions Zopa as one of the more robust digital banks in competition. Strategic investor A.P. Moller Holding led the funding round, holding a shared view with Zopa for sustainable long-term growth based on the customer’s value proposition.

According to Chetan Mehta, head of growth equity at A.P. Moller Holding, the investment speaks volumes of the “great capability of Zopa to help millions of U.K. consumers improve their financial lives.” He added that “A.P. Moller Holding is committed to supporting companies that are innovative and help drive sustainable, long-term growth,” and that this bank’s business model reflects the same principles.

Zopa has already taken some big strides toward increasing its market presence and products. The bank agreed to partner with John Lewis Money in October, allowing Zopa to provide personal loans to the 23 million customers of the retailer. This will allow Zopa to deliver loan quotes tailored to the needs of its customers within three minutes, and approved customers can get their funds within two hours. The partnership is likely to bolster Zopa’s customer base and increase its financial products offerings.

During the May period, Zopa joined the renewable energy market, again through a collaboration with the electricity supplier, Octopus Energy. This deal enabled Zopa to offer its suite of retail finance and buy now, pay later products to Octopus Energy customers in purchasing such sustainable energy products as solar panels and electric vehicle chargers. This development into green energy is in step with this growing demand for sustainable solutions by companies in the financial services markets.

Zopa’s growth is also attributed to strategic acquisitions. The bank made its first acquisition in February 2023 with the acquisition of BNPL firm DivideBuy. Zopa now expands its offerings in BNPL while at the same time ensuring that those products are responsibly provided to each customer, with full checks and assessments of affordability.

About zopa bank

Zopa Bank was initially started in 2005 as a P2P lending platform but became a digital bank in 2020. It is located in the UK and provides personal loans, savings accounts, and credit cards among other financial services. Zopa is known for its customer-centric approach, integrating technology to make banking easier and more competitive products. In recognition for being innovative and transparent, the bank has concentrated on helping improve its customers’ financial health while remaining founded on ethical lending practices.