The deal was completed on the International Securities Market (ISM) of the London Stock Exchange, with Zopa mentioning that it was oversubscribed by over two times from over 20 investors. Following the transaction, Zopa Group Limited is set to be re-registered as an unlisted, public company (PLC) within 6 months.
With the newly acquired capital, Zopa intends to solidify its balance sheet without diluting shareholders as it prepares to enter everyday banking with the launch of its current account. Before the receipt of the funds, the company had witnessed substantial growth, as, according to its data, it scaled its profits and expanded its capabilities. Zopa’s offering focuses on optimising customers’ financial health, obtaining access to better-priced credit, and benefiting from advanced saving products.
Furthermore, commenting on the news, representatives from Zopa underlined that the latest capital raise is set to assist their company’s growth trajectory and product launch plans, aiming to meet the needs, demands, and preferences of its users. Zopa currently holds a full banking licence, ensuring that it adheres to the same regulatory standards as traditional banks. Also, customers’ deposits are secured by the Financial Services Compensation Scheme (FSCS), safeguarding up to GBP 85,000 per account.
In addition to these funds, Zopa also secured USD 85 million in equity funding at the end of 2024, aiming to leverage the money to accelerate its development journey and meet client expectations. At that time, the company planned to prioritise providing products suitable for clients rather than entering new markets. Moreover, at that point, Zopa did not view the launch of its IPO as a priority, intending to wait for the markets to revive and become more favourable. Officials mentioned their plans to incorporate more artificial intelligence into the company, already utilising the technology in their teams for various purposes, including developers writing code.
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