Digital bank Zopa has raised £80 million in Additional Tier 1 (AT1) capital from existing and new investors ahead of a period of accelerated growth.
It follows a successful EUR 80 million equity fundraise executed 6 months ago, in November 2024.
The funds will be used to strengthen Zopa’s balance sheet without diluting shareholders as the bank prepares to enter everyday banking with the imminent launch of its flagship current account.
The transaction was completed on the International Securities Market (ISM) of the London Stock Exchange and was oversubscribed by over two times from 20+ investors. Following the transaction, Zopa Group Limited will be re-registered as an unlisted, public company (PLC) within 6 months.
The ISM delivers access to high-quality issuers, robust transparency standards, and the credibility of a London-listed bond—all in a market designed for institutional needs.
Most recently Zopa Bank doubled (2x) its full year profits before tax to £34.2 million for the financial year ending 31 December 2024 on a 30.2% revenue jump, underscoring its remarkable trajectory since launching in 2020.
Some of Zopa’s most exciting innovations to date enable customers to improve their financial health, gain easy access to better priced credit, and to benefit from market leading saving products.
It recently partnered with Britain’s largest electricity supplier Octopus Energy to enter the UK’s £23 billion renewable energy market, and with the retail giant John Lewis to offer personal loans directly to its 23 million customers.
Steve Hulme, CFO at Zopa Bank said: “Our latest capital raise is another strong vote of confidence in Zopa’s momentum and model. 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. With profits doubling, strategic partnerships scaling, and innovation firing on all cylinders we’re not just gaining speed—we’re shifting gears to become the go-to bank providing unmatched ease and value to millions of Britons”.
With sustained profitable growth, Zopa Bank is soon set to launch the Zopa Bank Account, its flagship current account with the best all-around value on the market and zero hassle.
Since launching its bank in 2020, Zopa has attracted £5.5 billion in deposits and currently has just over £3 billion loans on balance sheet. It has close to 850 employees and one of the highest employee satisfaction scores in the UK fintech industry.
Unlike many fintechs or e-money institutions, Zopa holds a full banking license, ensuring it adheres to the same regulatory standards as traditional banks. Customers’ deposits are safeguarded by the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 per account.
One of the UK’s highest rated and most celebrated financial brands, Zopa Bank was again voted the UK’s Best Personal Loan Provider and Best Credit Card Provider at the 2024 British Bank Awards.
Jefferies acted as Structuring Adviser and Sole Lead Manager to Zopa on the transaction.
Read the orginal article: https://ffnews.com/newsarticle/funding/digital-bank-zopa-raises-80-million-in-at1-capital-with-first-lse-bond-listing/
