Zopa raises £80m to back UK banking launch
Zopa has raised £80m in Additional Tier 1 (AT1) capital through the International Securities Market (ISM) of the London Stock Exchange.
The UK-based fintech said the capital will strengthen its balance sheet while preserving shareholder value, and will support its preparations to enter “everyday banking”, ahead of the upcoming launch of its flagship current accounts.
According to Zopa, its flagship accounts will provide customers with great value and zero hassle, allowing the bank to address an even larger share of their financial needs.
Jefferies acted as structuring adviser and sole lead manager on the transaction, which was more than twice oversubscribed, gaining interest from over 20 investors.
In November 2024, Zopa secured £68m in an equity funding round led by A.P. Moller Holding, alongside existing investors.
The bank doubled its full-year profits to £34.2m for the financial year ending 31 December 2024, supported by a 30.2% increase in revenue.
Zopa CEO Jaidev Janardana described the fundraise as a validation of the bank’s “financial performance and growth potential”.
Following the transaction, Zopa Group Limited will be re-registered as an unlisted public company within six months.