Zopa has raised £68m from investors as the London fintech prepares to launch its new current account product in 2025.
The round was led by round led by Danske Bank investor A.P. Moller, one of the largest investors in Denmark with $32 billion of net asset value.
Zopa did not confirm what the funding valued the company at, but a spokesperson said it “cemented” the bank’s unicorn status and was an “up-round” compared to its previous funding round.
Chetan Mehta, Head of Growth Equity at A.P. Moller Holding, said: “Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers.
“Today’s investment also reflects our confidence in Zopa’s robust and profitable business model that aligns with our commitment to sustainable, long-term growth.”
Zopa reached annual profitability for the first time in 2023, reporting a pre-tax profit of £15.8m for the year ended 31 December 2023, up from a loss of £26m in the year prior. The firm now says it expects to double profits in 2024 on a 35% annual revenue jump.
Zopa reaching annual profitability has created further anticipation over its long-awaited IPO. Janardana told the Financial Times that the company is ready to list and would preferably do so in London.
However, there is uncertainty over the timeline, with London grappling with a dearth of listings, causing some tech companies who had been weighing up an IPO to put plans on hold.
Zopa recently partnered with Britain’s largest electricity supplier, Octopus Energy to enter the UK’s £23 billion renewable energy market in a buy now, pay later offering, and with the retail giant John Lewis to offer personal loans directly to its 23 million customers.
Minister for Investment Baroness Poppy Gustafsson said: “It is excellent news that Zopa have raised over €80 million in their equity funding round, cementing their unicorn status and serving as a fantastic example of the UK’s strength in fintech.
“Increasing investment is a mission at the heart of this government and we are focused on transforming the UK into even more of a magnet for investors and global businesses of all shapes and sizes.”