Zopa raised $300m led by Softbank to build the UK’s bank for lending and savings

By Joy Dumasia

Digital bank Zopa has raised $300m (£220m) to drive its next growth phase, supporting its plan to become the strongest performing digital bank for savings and lending in the UK. The deal is currently pending regulatory approvals from the PRA and the FCA.

The round was led by Softbank Vision Fund 2, with participation from Chimera Abu Dhabi. The round was further supported by existing investors IAG Silverstripe, Davidson Kempner Capital Management LP, NorthZone, and Augmentum Fintech.

Zopa’s latest financing was announced at the Global Investment Summit (GIS) 2021, a one-day event hosted in London by the Prime Minister and attended by members of the Royal Family, aimed at attracting billions in foreign investment to every part of the country.

The funding will be used to meet the capital requirements of Zopa bank’s rapidly growing balance sheet. Recent growth has been fuelled by the continued expansion of Zopa’s suite of digital-first financial products. It has attracted some of the smartest and brightest talents from across the industry.

Its recent partnership with ClearScore offers a Zopa pre-approved credit card to users who have previously been declined credit products. At the same time, its integration with CreditLadder makes it possible for renters with thin files to improve their credit scores by reporting their rental payments.

Jaidev Janardana, CEO at Zopa, said: “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. Softbank Vision Fund 2’s investment into our future is a clear validation of Zopa’s responsible, sustainable and profitable approach to lending, our strong unit economics, and our vision to build the UK’s strongest performing bank with the most happy customers.”

Recently, IBS Intelligence reported that Digital bank Zopa had announced the appointment of Helen Beurier as its first Chief People Officer.