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Neobank Zopa Raises $93 Million

The British neobank Zopa announced that following the results of the next round of financing, it managed to raise investment funds for 75 million pounds ($93 million).

Neobank Zopa Raises $93 Million

This virtual financial institution was estimated at $1 billion in 2021. The path to this landmark indicator lasted 17 years, since the founding of neobank in 2004. The impressive valuation of the digital lender is largely the result of large investments by the Japanese corporation SoftBank.

The virtual financial institution is currently in a kind of waiting mode for the resumption of IPO markets. Initially, the digital lender planned to launch a public offering of shares in 2022.

The virtual bank raised new financing as a loan facility. Zopa intends to use the money received to strengthen its finances, consider some acquisitions, and continue to create new products along with offers related to lending, savings, deposits, BNPL, and other services.

Currently, the client base of the financial institution is 1 million people.

Another fundraiser was led by IAG SilverStripe with the participation of other investors. Special attention should be paid to the fact that this happened about seven months after neobank also managed to raise $93 million under the leadership of the same sponsor.

Currently, many startups that need investors to build up equity capital are still facing the manifestations of the so-called financial winter, but the trend is gradually changing, and the situation in the global debt market is taking on a different character. In May, according to statistics, the debt increased by 50.5%. Against this background, startups have the largest source of funding. Also, the growth curve was generally higher than that of equity-based financing.

For many companies, debt is a faster way to get funds or a way to increase the amount of money available, while keeping their capital at the same level. Zopa in this context acts according to a slightly different tactic. The financial institution is already generating money and growing. For this reason, the bank has grounds to repay all borrowings from the debt line. EBITDA is positive. This means that the financial institution is currently on track to make a profit for the first time this year. Representatives of the bank said that an internal analysis of the dynamics of the lender’s efficiency assumes a profit of 250 million pounds ($312 million) this year.

So far, the financial institution has no plans to expand its activities outside the UK. The bank’s CEO, Jaidev Janardana, says that there are currently many opportunities in the British market, against the background of the abundance of which there is no need to start a business internationally. This year, the lender has launched two new products, including the BNPL service and the popular long-term ISA savings account in the UK. Jaidev Janardana announced his intention to launch two more new products next year. He also said about expectations when the situation with the IPO will improve.

As we have reported earlier, Zopa Snaps Up DivideBuy.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.