Zopa, a prominent London fintech, has successfully secured £68m in funding as it gears up to introduce a new current account in 2025.
- The investment round was spearheaded by A.P. Moller Holding, a major Danish investor, affirming its confidence in Zopa’s business model.
- Zopa achieved profitability in 2023 with a pre-tax profit of £15.8m, marking a significant turnaround from the previous year’s losses.
- The company has plans to double its profits in 2024, with expectations of a 35% increase in annual revenue.
- Zopa is eyeing an IPO in London, although the exact timing remains uncertain amidst a lull in listings.
Zopa, a key player in the fintech scene in London, has secured an impressive £68m in its latest funding round. This strategic boost comes as the company prepares to launch a new current account by 2025. The funding round was led by A.P. Moller Holding, one of Denmark’s largest investors, known for its substantial net asset value of $32 billion. Although Zopa has not disclosed the company’s valuation post-funding, a spokesperson highlighted that this investment cements Zopa’s status as a unicorn and is an “up-round” compared to previous funding rounds.
Chetan Mehta from A.P. Moller Holding expressed that Zopa’s customer-centric approach plays a pivotal role in creating lasting positive impacts for millions of UK consumers. He noted, “Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers.” This statement underscores the investor’s belief in Zopa’s robust and profitable business model.
In 2023, Zopa reached a notable milestone by achieving annual profitability, reporting a pre-tax profit of £15.8m for the year ending 31 December 2023. This achievement represents a significant swing from the previous year, where Zopa reported a £26m loss. With this upward trajectory, the firm anticipates doubling its profits in 2024, driven by a projected 35% growth in annual revenues.
Zopa’s profitability milestone has stirred discussions about a potential IPO, which CEO Janardana has indicated could ideally be in London. However, the timeline remains uncertain as London faces fewer listings, prompting several tech companies to reassess their IPO plans.
In its quest for growth and diversification, Zopa has also entered the renewable energy market in a novel partnership with Octopus Energy, focusing on a buy now, pay later scheme. Furthermore, a collaboration with John Lewis aims to offer personal loans directly to millions of customers, further cementing Zopa’s footprint in diverse financial services.
Zopa’s recent funding and business milestones highlight its strategic growth and solidify its position within the evolving fintech landscape.
