Zopa Secures £80M Funding to Strengthen Balance Sheet and Advance Everyday Banking Goals

Zopa Secures £80M Funding to Strengthen Balance Sheet and Advance Everyday Banking Goals

Zopa, a leading digital bank and FinTech lender based in the UK, has successfully raised £80 million in Additional Tier 1 (AT1) capital to fuel its upcoming growth phase. This funding round saw participation from a diverse mix of both existing and new investors, and was executed on the International Securities Market (ISM) of the London Stock Exchange.

Funding Overview

The recent funding round was notable for being oversubscribed by more than two times, attracting interest from over 20 institutional investors. Jefferies acted as the structuring adviser and sole lead manager for this significant financial undertaking.

Zopa’s Evolution as a Digital Bank

Originally launched as a peer-to-peer lending platform, Zopa has transformed into a comprehensive digital bank since its inception in 2020. The bank now offers a variety of financial products, including:

  • Personal loans
  • Credit cards
  • Savings accounts

With these offerings, Zopa has established itself as a prominent player in the UK’s consumer finance landscape.

Utilization of Capital

The capital raised will be utilized to strengthen Zopa’s balance sheet while ensuring that existing shareholders are not diluted. This strategic move aligns with the company’s plans to expand into everyday banking with the launch of its flagship current account, aimed at meeting a wider spectrum of customer financial needs.

Strong Financial Performance and Partnerships

Zopa’s impressive financial performance in 2024 has set the foundation for this capital raise. The company reported:

  • Doubled pre-tax profits: £34.2 million
  • Revenue growth: 30.2% increase

Furthermore, Zopa has strategically expanded its market presence through collaborations with notable partners, such as:

  • Octopus Energy to support the UK’s £23 billion renewable energy sector
  • John Lewis to provide loans to its 23 million customers
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Company Growth and Future Plans

To date, Zopa has garnered £5.5 billion in deposits and has a loan book exceeding £3 billion. With nearly 850 employees, the company is poised to double its office space with a move to Canary Wharf as it gears up for its next growth phase.

For more information about Zopa and their services, visit their official website at Zopa.com.

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