UK challenger Zopa looks to accelerate growth with £75m funding

UK challenger bank Zopa has secured £75 million in Tier 2 capital to support its growth plans, bringing its total capital raised to £530 million. Zopa aims to expand its digital banking services and increase its customer base to five million by 2027.

Facts

• Zopa raises £75 million in Tier 2 capital to accelerate expansion.
• Total capital raised by Zopa now stands at £530 million, with £150 million raised this year.
• The bank plans to use the funding to fuel continuous growth and expansion.
• Zopa has secured £3.5 billion in deposits, approved £8 billion in personal loans, and issued 470,000 credit cards.
• Zopa’s digital banking services include personal loans, credit cards, savings accounts, money management tools, and car financing options.
• The bank currently serves one million active customers and aims to reach five million by 2027.
• CEO Jaidev Janardana views the funding as a market validation of Zopa Bank’s financial performance and responsible business model.
• Zopa is considering a public offering and has made strategic moves like appointing a COO and CTO and acquiring DivideBuy to offer buy now, pay later (BNPL) services.