The money has been generated by 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 $32bn 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”.
Zopa currently has more than 1.3 million customers and £5bn in deposits. It expects to double profits in 2024, a 35% annual revenue jump.
The bank currently offers various savings products, car finance, loans and a credit card. Its current account is in a beta testing phase with a limited number of customers.
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Zopa recently partnered with Octopus Energy to enter the UK’s £23bn 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, said: “We are excited to support Zopa on its journey to revolutionise 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 was granted a full banking licence in 2020 and, since then, it has attracted more than £5bn in deposits and currently has £3bn loans on its balance sheet. It employs about 850 people.
