Digital bank Zopa Bank has raised £75 million led by existing investors, the proceeds of which will support its M&A dealmaking plans this year.
The London-based bank will also use the funding to meet the capital requirements of its growing balance sheet.
Zopa, which was founded in 2020, expects its dealmaking to get underway in the first quarter of 2023.
“Zopa takes an agile and dynamic approach to credit risk, which means it has continued to lend responsibly in a changing environment,” said Jaidev Janardana, chief executive officer of Zopa.
“As a result, our business remains resilient, with record loan origination volumes, stable credit performance comparable to pre-pandemic levels, and continued innovation.”
Janardana added that Zopa expects to report full-year profitability in 2023 for the first time, having recorded several profitable months last year.
“We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories,” he said.
Since launching, the bank has attracted £3 billion in deposits, more than £2 billion of loans on balance sheet, and issued more than 400,000 credit cards.
Last year, Zopa and credit marketplace ClearScore launched a cross-industry initiative, the 2025 Fintech Pledge, the aim of which is to “drive 10 million actions that strengthen consumer finances amidst the rising cost of living”.