Zopa confirms £140m capital injection

Zopa confirms £140m capital injection

UK peer-to-peer lending outfit Zopa has confirmed a £140 million fundraise, enabling it to meet regulatory capital requirements for its foray into banking.

As reported in recent days, the firm has struck an agreement with IAG Silverstripe, an investment arm of IAG Capital, for the money.

In a statement, Zopa says the investment - still subject to final approval - is expected to enable its banking entity to fulfil its regulatory capital requirements, helping it get restrictions on its license lifted.

Jaidev Janardana, CEO, Zopa, says: “This new funding means we have concluded the fundraising phase of our bank mobilisation. Definitive agreements to provide the funding have been finalised and are subject to final approvals including regulatory change of control.

“We continue to hold our bank licence with restrictions and are working closely with the regulators to gain our full licence. We are excited that once approved, Zopa will be able to launch its bank alongside its peer-to-peer business and offer a broader set of products to our customers.”

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