Zopa has successfully raised £68m as it gears up for the launch of its new current account in 2025.
- The investment round was led by A.P. Moller Holding, bolstering Zopa’s valuation and affirming its unicorn status.
- Zopa’s profitability milestone in 2023, with a £15.8m profit, has set a positive momentum for anticipated future growth.
- The new funding supports Zopa’s expansion into the renewable energy sector with partners like Octopus Energy and John Lewis.
- Despite uncertainties in the IPO timeline, Zopa has expressed readiness to list, ideally on the London market.
Zopa, a leading fintech firm in London, has announced a significant boost of £68m from investors in preparation for its upcoming current account launch in 2025. The funding round was primarily driven by A.P. Moller Holding, a major investor based in Denmark with substantial net asset value. While the exact valuation post-funding remains undisclosed, a Zopa spokesperson confirmed that this investment round marks an ‘up-round’ and reinforces the company’s unicorn status.
A.P. Moller Holding’s Head of Growth Equity, Chetan Mehta, commended Zopa on its consumer-focused approach that creates value and impacts positively on the financial lives of millions in the UK. He remarked, “Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers.” This strong business model aligns with sustainable growth objectives, underscoring investor confidence in Zopa.
In 2023, Zopa achieved a profitable status for the first time, recording a pre-tax profit of £15.8m, a noteworthy turnaround from a £26m loss the previous year. The company aims to double its profits by 2024 backed by an expected 35% increase in annual revenue. This profitability has further intensified interest in the company’s potential initial public offering (IPO). Nevertheless, the timeline for the IPO remains uncertain as Zopa assesses the current listing conditions in London.
Zopa’s strategic initiatives extend beyond banking services. The company has recently partnered with Octopus Energy, the UK’s largest electricity supplier, to venture into the £23 billion renewable energy market. Through a buy now, pay later scheme, Zopa aims to provide new financial solutions. Additionally, collaboration with retail giant John Lewis will enable Zopa to offer personal loans to John Lewis’s expansive customer base of 23 million individuals.
According to the Financial Times, Zopa’s CEO has expressed a preference to pursue an IPO in London, highlighting the company’s readiness to proceed despite the lacklustre performance of the UK listing environment. This readiness signifies Zopa’s commitment to expanding its footprint and further establishing its position in the fintech market.
Zopa is well-positioned for growth with strategic investments and partnerships, paving the way for a promising future.
