Digital bank Zopa has raised £75M in Tier 2 capital to further accelerate its growth, supporting its vision to become Britain’s best bank.
The London-based tech unicorn is set to utilise the funds to fuel its continuous growth expansion, that has now seen it raise £150m in 2023 alone – bringing its total capital raised to a staggering £530m.
Jaidev Janardana, CEO at Zopa Bank said: “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.
“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.
“We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories as we get even closer to reaching full-year profitability in 2023 for the first time.”
Launched in 2020, Zopa Bank currently serves 1m customers , and this year it even launched a regulated BNPL product and a smart ISA to serve customers better.
Some of firm’s most exciting innovations enable customers to improve their financial health, gain access to better priced credit, access market leading saving products, and to transfer card balances in a way that helps pay down credit, faster.
Its best-in-class underwriting models are using cutting edge AI and machine learning algorithms that have been optimised over the last 8 years, helping Zopa deliver stable and better than expected credit performance through these uncertain times.
Since launching in 2020, Zopa Bank has attracted £3.5bn in deposits, more than £2bn of loans on balance sheet, and issued 470,000 credit cards.
Building on its profitable foundations, today Zopa Bank has 1 million customers generating an annualised revenue run rate of £250m. It is expected to serve 5 million customers by 2027.
Zopa was named “Bank of the Year” at the 2022 AltFi Awards, and previously “Best Personal Loan Provider” and “Best Credit Card Provider” at the British Bank Awards.
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