Zopa Bank raises £75m in ‘clear market validation’ of financial performance
Digital bank Zopa has raised £75 million in Tier 2 capital and surpassed one million customers for the first time.
The bank intends to use the new capital to fund its continued growth and expansion.
The latest capital injection brings the total capital raised by Zopa Bank to £530 million, with £150 million raised in 2023 alone.
Zopa Bank, which launched in 2020, is targeting five million customers by 2027.
Jaidev Janardana, chief executive officer of 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.”
The bank is on track to hit full-year profitability in 2023, in what would also be a first, and now generates £250 million in revenue.
Back in February, it raised £75 million led by existing investors, the proceeds of which supported its M&A dealmaking plans.
Later the same month, the bank acquired buy now, pay later provider DivideBuy, providing a boost to its revenue and marking its first acquisition.
In June, the bank appointed Peter Donlon and Kate Erb, from Moonpig and Leeds Building Society respectively, to its leadership team in preparation to scale.
Listen to Zopa Bank’s chief strategy officer Merve Ferrero on the Open Banking Expo Unplugged podcast, discussing the company’s growth journey.