The funding will drive growth in anticipation of Zopa’s flagship current account and GenAI offering set to launch in 2025.
The latest funding round was spearheaded by AP Moller Holding, a prominent direct investor in Denmark with a net asset value of $32 billion. This investment will support Zopa’s initiatives aimed at enhancing customer financial health, providing access to competitively priced credit, market-leading savings products, and facilitating balance transfers that aid in quicker credit repayment.
Jaidev Janardana, CEO of Zopa Bank, commented, “This fundraise validates our financial performance and growth potential. Since launching our bank in 2020, we’ve consistently provided financial products that offer exceptional value and convenience, aligned with our vision to build Britain’s best bank. We are thrilled to have investors who share our enthusiasm about reaching more customers across diverse product categories as we aspire to become the preferred bank for millions.”
Chetan Mehta, head of growth equity at AP Moller Holding, remarked, “We are excited to support Zopa in transforming the UK’s financial services landscape. Zopa’s strong customer-centric approach enables it to create lasting value and positively impact the financial well-being of millions of UK consumers. Today’s investment underscores our confidence in Zopa’s robust and profitable business model, which aligns with our commitment to sustainable, long-term growth.”
To date, Zopa has lent over £13 billion to UK consumers and attracted more than £5 billion in deposits since its launch in 2020. The bank currently holds £3 billion in loans. Zopa operates under a full banking license, adhering to the same regulatory standards as traditional banks, with customer deposits protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per account.
As of now, Zopa serves over 1.3 million customers and maintains £5 billion in deposits. The bank is profitable and reported its first full year of profitability in 2023, achieving a pre-tax profit of £15.8 million for the financial year ending December 31, 2023. Looking ahead, Zopa anticipates doubling its profits in 2024, fueled by a projected 35% jump in annual revenue. Recently, Zopa has also partnered with Octopus Energy to enter the UK’s £23 billion renewable energy market and with John Lewis to provide personal loans directly to its 23 million customers.