Zopa hits 1 million customers, raises £75m ahead of IPO plans
Three years on from its bank launch Zopa says it’s profitable and generating £250m of annualised revenue.
Digital bank Zopa has raised a £75m funding round.
Zopa, which now says it is generating £250m in annual revenue from its 1 million customers, will use the Tier 2 capital to bolster its growth and expansion plans.
Tier 2 capital sits below a bank’s more liquid assets, and is typically made up of more complex debt instruments.
Zopa launched its bank three years ago having been a peer-to-peer lender for the previous 15 years. The bank, Zopa says, is now operating profitably on a monthly basis but will hit full-year profitability for 2023 for the first time.
The company has now raised £530m, with £150m raised in 2023. It has made over £8bn in personal loans with £2bn of loans sitting on its balance sheet and currently has £3.5bn in deposits, with more than 470,000 credit card users.
“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,” Zopa Bank’s CEO Jaidev Janardana said.
“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," he added.
For several years Zopa has been reportedly eying a blockbuster IPO, pulling back only as macroeconomic conditions deteriorated.