The funding will support growth ahead of the launch of Zopa’s flagship current account and GenAI proposition in 2025.
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The funding round was led by AP Moller Holding, one of the largest direct investors in Denmark with $32 billion of net asset value and will be used to support some of Zopa’s innovations enable customers to improve their financial health, gain access to better priced credit, access market leading saving products, and transfer card balances in a way that helps pay off credit faster.
On this news, Jaidev Janardana, CEO at Zopa Bank says: “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.”
Chetan Mehta, head of growth equity at AP Moller Holding, adds: “We are excited to support Zopa on its journey to revolutionise the UK’s financial services industry. Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers. Today’s investment also reflects our confidence in Zopa’s robust and profitable business model that aligns with our commitment to sustainable, long-term growth.”
Zopa has lent over £13 billion to consumers in the UK to date. Further, since launching in 2020, Zopa has attracted more than £5 billion in deposits and currently has £3 billion loans on its balance sheet. Zopa also holds a full banking license, ensuring it adheres to the same regulatory standards as traditional banks and customer deposits are safeguarded by the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 per account.
At the time of this news, Zopa has over 1.3 million customers and £5 billion in deposits. Zopa is profitable and achieved its first full year of profitability in 2023, swinging to a pre-tax profit of £15.8 million for the financial year ending 31 December 2023. The bank also expects to double profits in 2024 on a 35% annual revenue jump. Zopa also recently partnered with Octopus Energy to enter the UK’s £23 billion renewable energy market, and with John Lewis to offer personal loans directly to its 23 million customers.
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