The new funding “markedly enhances” Zopa's unicorn status
In Brief:
- Bucking the trend of down rounds and valuation cuts, Zopa has just secured a massive £75m in funding
- It hit a valuation of $1bn in October 2021 when it raised $300m in a round led by SoftBank’s Vision Fund 2, and since then has gone on to reach profitability – just 21 months after winning its banking licence and pivoting out of peer-to-peer lending
- Zopa plans to use the fresh funding, led by existing investors, to accelerate growth this year, with mergers and acquisitions dealmaking kicking off as soon as this quarter, it said.
What does this mean?
“Today’s equity round reaffirms the support of our investors despite the challenging economic environment,” Zopa CEO Jaidev Janardana said. “It is a clear validation of Zopa’s responsible, sustainable and profitable approach to lending, our strong unit economics, and our vision to build Britain’s best bank.”
