Zopa Bank has received £75 million in funding to support its next phase of growth in the UK.
The leading digital bank aims to use the funds to drive mergers and acquisitions dealmaking during Q1 of 2023.
While Zopa has not disclosed its new valuation, a statement from the firm notes that the funding “cements and markedly enhances” its unicorn status. Zopa reached a valuation of £750 in early 2021, with its £220 million raise led by Softbank’s Vision Fund 2.
Zopa Bank, unlike other e-money platforms, has a banking license and is more comparable to other incumbent and challenger banks. The digital bank has distributed over 400,000 credit cards, and received £3 billion in deposits.
CEO of Zopa Bank, Jaidev Janardana commented: “Zopa takes an agile and dynamic approach to credit risk which means it has continued to lend responsibly in a changing environment. As a result, our business remains resilient with record loan origination volumes, stable credit performance comparable to pre-pandemic levels, and continued innovation.
“We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories. This has already led to several profitable months in 2022 and will very likely convert into full-year profitability in 2023 for the first time.”
The bank has seemingly excelled since its establishment in 2020 despite the current economic crisis. To counteract the damage of the current cost of living, Zopa formed a coalition with other financial institutions in the UK to financially support the population with the 2025 Fintech Pledge.