Zopa raises $300m in pre-IPO fundraise
Zopa Bank has confirmed a $300m (£220m) fundraise as part of its plans to go public.
The digital bank, an offshoot of the world’s oldest peer-to-peer lender, revealed its latest financial injection was led by Softbank and also includes backing from existing investors IAG Silverstripe, Davidson Kempner Capital Management LP, NorthZone and Augmentum Fintech.
Law firm Allen & Overy, which advised Zopa on gaining its banking licence, also provided support on this latest fundraise.
The deal was rumoured last week and announced at the global investment summit today (19 October), attended by Prime Minister Boris Johnson.
It has been described as a pre-initial public offering (IPO) funding round that will boost its balance sheet and help it meet capital requirements.
Zopa’s IPO is expected to take place next year, and it will mark the second UK P2P IPO, after Funding Circle’s £300m listing in 2018.
Read more: Zopa reviewing “strategic direction” of P2P lending platform
“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,” Jaidev Janardana (pictured), chief executive at Zopa said.
“Softbank’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 happiest customers.”
Sourav Sen, investor for SoftBank Investor Advisers, described Zopa as “a leading player in the UK’s nascent neo banking sector.”
Augmentum Fintech invested £10m into the funding round.
“This capital injection of £220m will enable them to continue on this accelerated path and further evolve their diversified product set.” Tim Levene, chief executive of Augmentum Fintech, said.
