Zopa raises another £220 million and says that is on track to build „the UK’s best bank for borrowing and savings”

The UK digital bank Zopa announced that it has raised another £220 million which will drive the next phase of the company’s growth. The bank says that is on track to hit profitability within the next 10 weeks, „making Zopa one of the fastest digital banks in the UK to do so, just 18 months after gaining our full bank licence„.

„This round of funding, led by Softbank Vision Fund 2, will further support our plan to help even more UK consumers improve their financial health and access great borrowing and saving products,” the bank said. The new financing gives the company a dollar unicorn price tag with a valuation of close to £750 million.

Our bank journey so far

Back in 2016, we first announced our plan to launch a fully regulated bank that would provide a different banking proposition for UK consumers.

After getting the bank licence in June 2020, just over a year on from fully launching our bank, Zopa attracted £675m in deposits for fixed savings accounts and issued 150,000 credit cards, making the bank one of the top 10 credit card issuers.

This year Zopa hit over £6bn in disbursed loans and the bank is currently lending over £100m per year in car loans.

Partnerships to improve customers’ financial outlook

Partnership with ClearScore offered a Zopa pre-approved credit card to users who may have previously been declined credit products, while Zopa integration with CreditLadder made it possible for renters with thin files to improve their credit score by reporting their rental payments.

The bank’s Borrowing Power tool now also includes Zopa loans and credit card, meaning that customers can see all of the Zopa credit options available to them alongside specific actions on how to improve their eligibility and APR.

The bank has also launched utility switching services to help customers save money and increase their disposable income – a key factor in improving credit worthiness.

So, what’s next?

„We are focused on building a sustainable, profitable business model which works for our customers and our shareholders. This is close to becoming a reality as we are on track to hit profitability within the next 10 weeks, making Zopa one of the fastest digital banks in the UK to do so, just 18 months after gaining our full bank licence,” according to the company’s blog.