Digital bank Zopa reports that it has raised just more than €80 million (GBP £68 million) in an equity funding round that has been led by A.P. Moller Holding, along with participation from existing investors.
A.P. Moller Holding is reportedly one of the largest direct investors in Denmark with $32 billion of Net Asset Value.
Its objective is to build businesses by driving “long-term” value and growth through engaged and valued ownership.
The proceeds from the funding will be channeled towards supporting Zopa’s growth as it prepares to launch its current account in 2025 and a GenAI proposition that reinvents “how people interact with their money.”
Some of Zopa’s innovations enable customers to improve financial health, gain access to “better priced” credit, access saving products, and to transfer card balances in “a way that helps pay down credit.”
It partnered with Britain’s electricity supplier Octopus Energy to enter the UK’s renewable energy market, and with the retail firm 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.”
Chetan Mehta, Head of Growth Equity at A.P. Moller Holding, added:
“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.”
Since launching its bank back in 2020, Zopa has attracted £5 billion+ in deposits and currently has £3 billion loans on balance sheet.
It has close to 850 employees.
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.”
Established in 2020 and backed by Silicon Valley’s investors, Zopa claims it is building Britain’s best bank.
Zopa explained that it blends the agility of digital banking with lending expertise – having lent £13 billion+ to consumers in the UK to date.
In 4 years, Zopa has secured its banking license, “grown to 1.3 million customers, achieved profitability and launched current accounts, unsecured personal loans, point-of-sale, car finance, credit cards, savings accounts, and tools for improved financial management and health.”