UK neobank Zopa raises $300m to fuel next phase of growth
UK digital bank Zopa has raised $300 million (£220 million) in a new funding round led by Softbank’s Vision Fund 2 as it looks to continue its rapid growth.
The financing round saw participation from Chimera Abu Dhabi and existing investors IAG Silverstripe, Davidson Kempner Capital Management LP, NorthZone and Augmentum Fintech.
The firm says the cash will be used to meet its liquid capital requirements. The UK-based challenger, which focuses on savings and peer-to-peer lending, secured a full UK bank licence last year and launched a range fixed term savings accounts.
Zopa CEO Jaidev Janardana says: “In a very crowded ecosystem that often focuses on current accounts or other free money management offerings, Zopa meets customer needs by focusing on how they borrow and save, the two things that have most impact on their finances.”
Zopa says it has seen substantial growth driven by the expansion of its digital-first financial services, including financial wellness and credit products.
The deal is currently pending regulatory approval from the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA).