- London fintech Zopa Bank just raised a $300 million in a pre-IPO raise from SoftBank.
- Founded in 2005, Zopa got a UK banking license last year and has grown rapidly as a result.
- Insider understands the deal will bring the company’s valuation to over $1 billion.
British fintech Zopa Bank has raised $300 million in fresh funding from Japanese investment giant SoftBank.
The company, which was founded in 2005, originally established itself as a peer-to-peer lender before adding a full
digital banking
offering after it secured a license from the UK’s Financial Conduct Authority in June 2020.
Zopa offers a range of financial products including savings accounts and loans as well as credit cards and car financing.
“We always had a different take on digital banking because we’re more focused on savings and borrowing and we can have a bigger impact on consumer’s finances there,” Zopa Bank CEO Jaidev Janardana told Insider.
“It’s allowed us to create a more sustainable business model, rather than focusing on current accounts and money management like our loss making competitors.”
Zopa declined to comment on its new valuation but sources close to the deal told Insider that the funding took the company past a unicorn or $1 billion valuation.
Zopa’s proposition relies on its 16 years of insight, technology, and customer data and has helped it come close to reaching profitability which it hopes to do in the next 10 weeks, according to Janardana.
The company is the latest fintech added to SoftBank’s portfolio. The Japanese investor has also backed British digital banks Revolut and OakNorth.
SoftBank Vision Fund 2 led the funding with participation from Chimera Capital. Existing investors IAG Silverstripe, Davidson Kempner Capital Management, NorthZone, and Augmentum Fintech also joined the round.
The funding will be used to support the company’s need for increased regulatory capital and takes Zopa to more than $730 million raised to-date.
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