London-based neobank Zopa offers peer-to-peer (P2P) lending service, pioneering auto finance solutions and more. Now, the company announced that it bagged £20 million in funding from existing investors.
Focuses on growth
IAG Silverstripe led the investment round alongside a slew of investors, including Augmentum, Waterfall managed Alternative Credit Investments and Venture Founders. Zopa will use the funds to fuel its growth when it believes that there is more demand for products.
Jaidev Janardana, Zopa’s CEO said: “Less than a year since launching our bank, we have exceeded our plan for growth, both in terms of customers and balance sheet. This capital injection will enable us to continue on this accelerated path. Our strong entry to the UK savings and credit card markets shows the organic appeal of our products and we are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories.”
Get competitive rates on savings
While many people and industries were affected by COVID-19 and the subsequent lockdowns, there has been a change in the behaviour of customers and their requirements. Zopa has seen a sustained need for access to credit as people look to carry out home renovation, buy cars and revive postponed wedding plans.
Also, the credit quality of these loans has been better than expectations. Likewise, many people have managed to accrue savings during the pandemic due to the lack of discretionary spending. Zopa’ s fixed term savings product provides competitive rates on their savings.
Deposits worth £250M
Zopa was founded in 2005 by Giles Andrews, James Alexander, Richard Duvall, David Nicholson and Tim Parlett. In nine months of gaining its full bank licence, neobank Zopa has successfully launched. Fixed Term Savings accounts and an innovative credit card to UK consumers.
The digital bank has already attracted over £250 million in deposits. Also, it is a top 10 credit card issuer in the UK in terms of new customers. It puts Zopa in a uniquely strong financial position. The company witnessed double revenues since
Zopa is quite different from earlier growth and focuses on proven capabilities in lending providing a clear path to profitability.