Zopa has today announced it has raised £140m, signing its largest funding round to date.
The additional investment is expected to enable Zopa’s banking entity to fulfil its regulatory capital requirements, a key requirement for the lifting of restrictions on its bank licence. The investment is subject to final approvals, including regulatory change of control. Zopa continues to hold its banking licence with restrictions and is working with the regulator to obtain its full licence.
Once approved, the investment will be provided by IAG Silverstripe, an investment arm of IAG Capital, the private investment group specialising in digital and technology-led businesses. IAG Silverstripe is an existing minority investor in Zopa, having invested in October 2018.
Jaidev Janardana, Zopa CEO, said: “This new funding means we have concluded the fundraising phase of our bank mobilisation. Definitive agreements to provide the funding have been finalised and are subject to final approvals including regulatory change of control.
“We continue to hold our bank licence with restrictions and are working closely with the regulators to gain our full licence. We are excited that once approved, Zopa will be able to launch its bank alongside its peer-to-peer business and offer a broader set of products to our customers.”
Since pioneering the peer-to-peer lending industry globally in 2005, Zopa has helped half a million people enjoy better value personal loans or grow their money, created a new asset class, and redefined the experience people have come to expect from their financial provider.
Zopa’s bank will sit alongside its existing peer to peer business (Zopa Limited), as part of the overall Zopa Group.
To date, Zopa Limited has lent £5bn in unsecured personal loans to customers in the UK.