Zopa Bank has raised £80m after listing its first ever bond on the London Stock Exchange (LSE).
Founded as a peer-to-peer lender in 2005, the London-based fintech steadily moved into banking services, gaining a full UK licence in 2020.
Having secured an €80m equity fundraise in December, Zopa issued a bond on the LSE’s International Securities Market (ISM), which investors can in turn buy and sell on the market. Reports say the deal was oversubscribed, with more than 20 investors.
Zopa CFO Steve Hulme told City AM the raise was “another strong vote of confidence” in the company’s business, as it readies plans to offer customers current accounts later this year.
“Following a successful equity round just six months ago, this non-dilutive capital strengthens our balance sheet and positions us firmly on the starting line for our bank account launch.”
He added: “We’re shifting gears to become the go-to bank providing unmatched ease and value to millions of Britons.”
In an attempt to compete with British incumbents like Monzo and Revolut, Zopa has been trialling an interest-incurring current account product and is looking at implementing subscriptions as well as an investment product.
According to industry watchers, Zopa is considered one of the top fintech candidates for a public listing, but the company says recent turbulence on the public markets means an IPO is unlikely to happen soon.
Read the orginal article: https://sifted.eu/articles/zopa-bank-raises-80m-with-first-lse-bond-listing/
