Zopa Bank has raised £68 million in equity funding to support its continued expansion and upcoming innovations, including the launch of its flagship current account and Generative AI (GenAI) proposition set for 2025.
Key Highlights from the Funding Round
- The investment was led by AP Moller Holding, a prominent Danish investor with a $32 billion net asset value.
- Funds will be directed toward enhancing Zopa’s financial offerings, enabling customers to access better-priced credit, market-leading savings products, and innovative tools for improved financial health.
Jaidev Janardana, CEO of Zopa Bank, remarked:
“Today’s fundraise validates our financial performance and growth potential. Since launching our bank in 2020, we’ve consistently offered products that provide great value and ease to customers. This support will help us serve more customers across more product categories as we aim to become Britain’s best bank.”
Chetan Mehta, head of growth equity at AP Moller Holding, added:
“Zopa’s remarkable customer-centric approach delivers lasting value and positively impacts millions of UK consumers. This investment reflects our confidence in Zopa’s sustainable, long-term growth and robust, profitable business model.”
Zopa’s Milestones and Financial Performance
- Total Lending: Over £13 billion to UK consumers.
- Customer Base: Over 1.3 million customers, with £5 billion in deposits and £3 billion in loans on its balance sheet.
- Profitability: Achieved its first full year of profitability in 2023 with a £15.8 million pre-tax profit and expects to double profits in 2024 on a 35% revenue growth trajectory.
- Regulation: Holds a full banking license with deposits protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per account.
Strategic Partnerships and Market Entry
- Collaborated with Octopus Energy to enter the UK’s £23 billion renewable energy market.
- Partnered with John Lewis to offer personal loans to its 23 million customers.
The fresh funding and upcoming innovations, including a current account and GenAI tools, position Zopa as a transformative player in the UK financial services industry. With robust profitability and a strong customer focus, Zopa aims to solidify its reputation as the go-to bank for millions of consumers.