Zopa borrows £75 million because it eyes first revenue in 19-year historical past
The London Bridge-based agency, which was based in 2005 as a peer-to-peer lending enterprise however now focuses on digital banking, says it’s presently worthwhile, and expects to make a full-year revenue this 12 months after surpassing a million clients. The agency stated it’s presently worthwhile.
Jaidev Janardana, CEO at Zopa Bank stated: “Today’s financing is a clear market validation of Zopa Bank’s financial performance, pointing to strong investor confidence in its growth and in its ability to deliver strong financial performance despite the economic uncertainty.
“As a profitable business, it is also a seal of approval for our responsible and sustainable business model, our strong unit economics, and our vision to build Britain’s best bank.
“We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories as we get even closer to reaching full-year profitability in 2023 for the first time.”
A Zopa spokesperson stated choosing debt as an alternative of fairness funding allowed Zopa to develop “without diluting the equity position of its shareholders”.
The digital financial institution expects to have 5 million clients by 2027.
Last month, the Standard revealed that Zopa had returned to the peer-to-peer lending market, 18 months after promoting off that arm amid a crackdown on the sector. Zopa had been a pioneer within the peer-to-peer lending market when it launched.