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Zopa raises £75 million to accelerate growth

Zopa raises £75 million to accelerate growth

Digital bank Zopa has raised £75 million ($95m) in Tier 2 capital to further accelerate its growth. The fundraise brings Zopa’s total capital raised to £530 million, with £150 million raised in 2023.

The bank has not yet announced plans to go public after postponing a planned IPO at the end of 2022.

The news comes after the bank predicted it would achieve full profitability in 2023, and brought Peter Donlon onboard as chief technology officer and Kate Erb as chief operating officer.

Jaidev Janardana, CEO at Zopa Bank said: “Today’s financing is a clear market validation of Zopa Bank’s financial performance, pointing to strong investor confidence in its growth and in its ability to deliver strong financial performance despite the economic uncertainty.

“As a profitable business, it is also a seal of approval for our responsible and sustainable business model, our strong unit economics, and our vision to build Britain’s best bank.

“We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories as we get even closer to reaching full-year profitability in 2023 for the first time.”

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