Digital bank Zopa has raised just over €80 million (GBP £68 million) in an equity funding round led by A.P. Moller Holding, with significant participation from existing investors.
A.P. Moller Holding is one of the largest direct investors in Denmark with $32 billion of Net Asset Value. Its objective is to build and develop businesses by driving long-term value and growth through engaged and valued ownership.
The funding will be used to support Zopa’s continuous growth as it prepares to launch its flagship current account in 2025 and a pioneering GenAI proposition that reinvents how people interact with their money.
Some of Zopa’s most exciting innovations enable customers to improve their financial health, gain access to better priced credit, access market leading saving products, and to transfer card balances in a way that helps pay down credit, faster.
It recently partnered with Britain’s largest electricity supplier Octopus Energy to enter the UK’s £23 billion renewable energy market, and with the retail giant John Lewis to offer personal loans directly to its 23 million customers.
Jaidev Janardana, CEO at Zopa Bank said: “Today’s fundraise validates our financial performance and growth potential. Since launching our bank in 2020, we’ve consistently offered financial products that offer great value and ease to our customers, supporting our vision to build Britain’s best bank. We are thrilled to have investors who share our excitement at the opportunity to serve more customers across more product categories as we aim to become the go-to bank for millions of consumers.”
Chetan Mehta, Head of Growth Equity at A.P. Moller Holding, added: “We are excited to support Zopa on its journey to revolutionize the UK’s financial services industry. Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers. Today’s investment also reflects our confidence in Zopa’s robust and profitable business model that aligns with our commitment to sustainable, long-term growth.”
Zopa blends the agility of digital banking with 20 years of lending expertise, having lent more than £13 billion to consumers in the UK to date.
Since launching its bank in 2020, Zopa has attracted more than £5 billion in deposits and currently has £3 billion loans on balance sheet. It has close to 850 employees and one of the highest employee satisfaction scores in the UK fintech industry.
Unlike many fintechs or e-money institutions, Zopa holds a full banking license, ensuring it adheres to the same regulatory standards as traditional banks. Customers’ deposits are safeguarded by the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 per account.
One of the UK’s highest rated and most celebrated financial brands, Zopa Bank was again voted the UK’s Best Personal Loan Provider and Best Credit Card Provider at the 2024 British Bank Awards.
