Zopa raises £75m ahead of M&A push
Zopa has raised £75m to drive its growth and support a dealmaking push that could begin as early as this quarter.
Augmentum Fintech provided £4m of the £75m funding. The other investors have yet to be disclosed.
The digital bank and former peer-to-peer lending platform said that it plans to complete a number of mergers and acquisitions this year as part of its efforts to become one of the UK’s leading banks.
Jaidev Janardana, chief executive at Zopa, said that the fundraise followed “several profitable months in 2022” and he believes that the digital bank will reach full-year profitability in 2023 for the first time.
“Today’s equity round reaffirms the support of our investors despite the challenging economic environment,” said Janardana.
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“It is a clear validation of Zopa’s responsible, sustainable and profitable approach to lending, our strong unit economics, and our vision to build Britain’s best bank.
“Zopa takes an agile and dynamic approach to credit risk which means it has continued to lend responsibly in a changing environment. As a result, our business remains resilient with record loan origination volumes, stable credit performance comparable to pre-pandemic levels, and continued innovation.”
The £75m will be used to meet the capital requirements of Zopa Bank’s growing balance sheet, as well as helping to fund some M&A dealmaking.
Earlier this year, it was revealed that more than £3bn has been deposited into Zopa Bank, in the latest milestone for the former P2P lender.
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