British fintech company Zopa Bank has more than halved its pre-tax losses, as revealed by the fintech’s latest financial results.
The group posted losses of £23.8m for the year ended December 2022, down from the £48.3m pre-tax loss in 2021.
The firm increased its operating income by 186% to £153.7m, citing “continued growth in customers choosing to use Zopa” as the reason for the boost.
The newly posted results also revealed that Zopa had acquired a £41m loan portfolio for a cash consideration of £38m, despite the company having exited the peer-to-peer lending market.
Zopa originally launched as a P2P lender in 2005. However, after a regulator crackdown in the loan market, the firm pivoted from the market, selling that portion of its business, which became Plata Finance.
“As people in the UK navigate through the cost-of-living crisis and rising interest rates, Zopa’s proposition becomes ever more relevant,” said Zopa CEO Jaidev Janardana.
“For borrowers seeking fairly priced and responsible credit or savers seeking to find the right balance between returns and access, Zopa Bank offers a superior alternative to the incumbents.”
“These loans were purchased from an institutional investor in the legacy P2P platform operated previously by Zopa (now by Plata Finance),” said the company in its results.
A spokesperson for Zopa added that the company was not planning to issue new P2P loans.
In February, Zopa raised £75m for acquisitions and “growing its balance sheet”. Later that month, Zopa acquired Staffordshire-based BNPL firm DivideBuy.
The company has been gearing up for an initial public offering by bolstering its leadership team. Zopa has previously said it is expecting to list in London before the end of the year.