Zopa has successfully secured £68m in funding, as it gears up to introduce a current account by 2025.
- This investment round strengthens Zopa’s unicorn status and is led by A.P. Moller Holding, a significant Danish investor.
- Zopa achieved a pre-tax profit in 2023, marking the year’s financial success with a £15.8m profit compared to a previous loss.
- The fintech is poised to enter the IPO arena, although market conditions in London may delay its listing plans.
- Zopa is expanding its market reach through collaborations with Octopus Energy and John Lewis, targeting renewable energy financing and personal loans.
Zopa, a leading fintech firm in London, has raised a substantial £68 million from investors with the strategic aim of launching a new current account by 2025. The funding round was significantly backed by A.P. Moller Holding, a prominent investor from Denmark, confirming the company’s value in the global market. This investment not only supports the introduction of Zopa’s new financial products but also reassures its position as a unicorn—companies valued at over $1 billion—cementing its economic stature.
Although Zopa has not disclosed its current valuation post-investment, a spokesperson indicated that this round was an ‘up-round,’ suggesting increased value from the previous funding stage. Chetan Mehta, from A.P. Moller Holding, highlighted Zopa’s dedication to customer satisfaction and its potential to make a positive impact on UK consumers’ financial lives. Mehta stated that the investment reflects confidence in Zopa’s sustainable and profitable business model.
In the fiscal year ending 2023, Zopa announced its first annual profitability with a pre-tax profit of £15.8 million, demonstrating a strong financial turnaround from a loss of £26 million the prior year. This financial success has bolstered Zopa’s growth outlook, with expectations to double its profits in 2024, accompanied by a 35% revenue increase. Such promising financial outcomes are generating interest in a potential IPO, aiming preferably for a listing in London. Yet, ongoing market uncertainties might affect the timeline of these plans.
Apart from building its core financial offerings, Zopa is strategically collaborating with leading companies like Octopus Energy and John Lewis. These partnerships indicate Zopa’s entry into the renewable energy sector through a buy now, pay later initiative, and expanded financial services arena by providing personal loans to millions of John Lewis customers. These moves underscore Zopa’s commitment to diversify its service offerings and solidify its presence in the UK market.
Zopa’s strategic funding and partnerships are setting the stage for its ambitious growth and product expansion plans.
