Digital bank Zopa nets £75m to support M&As


Digital bank Zopa has raised £75m from existing investors to support the next stage of its growth, which includes M&A activity.

This burst of equity will allow Zopa to grow its balance sheet and support M&A dealmaking, which could commence later this quarter.

Zopa stated that despite the economic uncertainty, the firm managed to grow its revenue by over 100% year-over-year. It attributes this growth to the continued expansion of its suite of digital-first financial products.

Since it launched in 2020, the bank has attracted over £3bn in deposits, over £2bn in loans on balance sheet and issued more than 400,000 credit cards.

The digital bank, which is based in the UK, provides consumers with various financial services, including loans, credit cards, fixed term savings and more.

Zopa CEO Jaidev Janardana 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.

“Zopa takes an agile and dynamic approach to credit risk which means it has continued to lend responsibly in a changing environment. As a result, our business remains resilient with record loan origination volumes, stable credit performance comparable to pre-pandemic levels, and continued innovation. 

“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.”

Last year, it was reported Zopa was looking to raise another $100m before it went public.

In other WealthTech news, German neobank Ruuky filed for insolvency after it was unable to overcome market dynamics and raise additional funding.

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