Zopa, a UK-based digital bank blending innovative technology with over 20 years of lending expertise, has raised €80m (£68m) in an equity funding round.
The round was led by A.P. Moller Holding, alongside participation from existing investors.
The latest funding will support Zopa’s continued expansion, including the launch of a flagship current account in 2025 and a pioneering Generative AI (GenAI) product designed to transform how customers manage their finances.
Zopa has positioned itself as a leader in digital banking, offering solutions to over 1.3m customers in the UK.
It provides products aimed at improving financial health, such as market-leading savings accounts, affordable credit options, and innovative balance transfer tools to help users pay down credit more efficiently.
Since launching its bank in 2020, Zopa has secured £5bn in deposits, with £3bn in loans currently on its balance sheet.
The bank has achieved several significant milestones this year, including partnerships with prominent UK retailers such as John Lewis.
A recent collaboration with Octopus Energy allows Zopa to assist consumers in transitioning to green energy using its suite of regulated buy now, pay later (BNPL) and retail finance products.
Zopa CEO Jaidev Janardana said, “Today’s fundraise validates our financial performance and growth potential. Since launching our bank in 2020, we’ve consistently offered financial products that offer great value and ease to our customers, supporting our vision to build Britain’s best bank. We are thrilled to have investors who share our excitement at the opportunity to serve more customers across more product categories as we aim to become the go-to bank for millions of consumers.”
The funding also underscores Zopa’s commitment to regulatory compliance. Unlike many FinTechs, Zopa operates under a full banking license, with customer deposits safeguarded by the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 per account.
Zopa’s accomplishments extend beyond finance. It boasts an engaged workforce of 850 employees, recognised as among the most satisfied in the UK FinTech sector.
The bank was also named the UK’s Best Personal Loan Provider and Best Credit Card Provider at the 2024 British Bank Awards, affirming its status as a highly rated and celebrated financial brand.
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
