U.Okay.-based digital financial institution Zopa raised $87 million in an fairness spherical led by A.P. Moller Holding and current buyers.
The spherical boosts Zopa’s whole funding to $1.067 billion.
Regardless of declaring plans for a 2022 IPO throughout its 2021 funding spherical, Zopa has determined to attend for higher market circumstances.
Digital financial institution Zopa appears to be impervious to the downturn within the fintech funding atmosphere. The U.Okay.-based fintech has simply raised $87 million (€80 million), boosting its whole raised to $1.067 billion. The fairness spherical was led by A.P. Moller Holding and current buyers.
Whereas the funding comes at a time throughout which many fintechs are experiencing a funding dry spell, this isn’t the primary time Zopa has overwhelmed the chances. In February 2023, Zopa raised a powerful $92 million (£75 million) from current buyers in addition to an undisclosed lead investor. On the time, the corporate stated the spherical “cements and enhances” its unicorn standing.
Zopa, which initially launched as a peer-to-peer lending platform in 2005, pivoted to change into a digital financial institution in 2020, when it acquired its full banking license from the Monetary Conduct Authority. Immediately, the corporate holds greater than £5 billion in deposits for its 1.3 million clients. Zopa’s platform goals to assist customers enhance their monetary well being through financial savings instruments, lending merchandise, bank card choices, and varied car financing instruments. Thus far, Zopa has lent greater than $16.6 billion (£13 billion) to customers within the U.Okay. and at present has £3 billion in loans on its stability sheet.
“Immediately’s fundraise validates our monetary efficiency and progress potential,” stated Zopa CEO Jaidev Janardana. “Since launching our financial institution in 2020, we’ve constantly provided monetary merchandise that supply nice worth and ease to our clients, supporting our imaginative and prescient to construct Britain’s greatest financial institution. We’re thrilled to have buyers who share our pleasure on the alternative to serve extra clients throughout extra product classes as we intention to change into the go-to financial institution for thousands and thousands of customers.”
Notably, whereas Zopa billed its 2021 funding spherical as a “pre-IPO spherical,” declaring plans to go public by the tip of 2022, it seems that plans have modified. The corporate advised TechCrunch that it’s not at present pursuing an IPO. “We are going to await the markets to revive and be extra constructive,” stated Janardana in an interview. Curiously, Klarna, one other fintech that delayed its IPO plans, not too long ago filed to go public in 2025. The outcomes of Klarna’s public providing at the moment will both persuade Zopa that it’s time to IPO or assist to cement its resolution to proceed working as a non-public firm.
Photograph by Matheus Bertelli
