Zopa, the UK savings and lending bank, has raised over €80m (£66m) ahead of the launch of its current account offering next year.
The equity funding round was led by AP Moller Holding, the Danish conglomerate, with “significant participation” from existing investors, including Silverstripe.
Another well-known Zopa shareholder is SoftBank, the Japanese multinational.
Zopa did not disclose its valuation, but CityAM said the new funding valued it higher than unicorn status of $1bn.
The funding will support Zopa’s growth as it launches its current account proposition next year and a GenAI proposition.
In 2023, Zopa underwent two £75m fundraising rounds, amid a challenging funding landscape.
In total, Zopa has raised £768m, according to Crunchbase.
Zopa, which has a UK banking licence, currently offers personal loans, credit cards, point-of-sale retail finance, car finance, savings accounts, and financial health tools.
It says it has 1.3m customers and £5m in deposits.
It chalked up its first full year of profitability in 2023, making a pre-tax profit of £15.8m for the year ending 2023. It says it expects to double profits in 2024.
Jaidev Janardana, CEO at Zopa Bank 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.”
Minister for Investment Baroness Gustafsson said:
“It is excellent news that Zopa have raised over €80 million in their equity funding round, cementing their unicorn status and serving as a fantastic example of the UK’s strength in fintech.
“Increasing investment is a mission at the heart of this government and we are focused on transforming the UK into even more of a magnet for investors and global businesses of all shapes and sizes.
