Zopa Bank secures £75m in Tier 2 capital to fund expansion and new products
The funding round was led by IAG SilverStrip to support business growth and future acquisitions.
Zopa Bank is a British digital bank providing online financial services, credit cards, and savings accounts. The company operates entirely through digital channels without physical branches.
Zopa Bank has secured £75m in Tier 2 capital led by IAG SilverStrip. The fresh funding follows an equity raise completed seven months prior and brings the total capital raised by the bank to £530m.
The capital will be deployed to strengthen financial reserves, support upcoming acquisitions, expand the product suite, and accelerate overall business growth. This announcement coincides with the lender surpassing 1m customers and achieving an annualised revenue run rate of £250m.
Chief executive Jaidev Janardana noted that the transaction validates the bank's financial model and robust unit economics amidst broader economic headwinds. The profitable institution anticipates reaching full-year profitability through 2023 for the first time.
From the founder
"Today’s financing is a clear market validation of Zopa Bank’s financial performance, pointing to strong investor confidence in its growth and in its ability to deliver strong financial performance despite the economic uncertainty. As a profitable business, it is also a seal of approval for our responsible and sustainable business model, our strong unit economics, and our vision to build Britain’s best bank. We are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories as we get even closer to reaching full-year profitability in 2023 for the first time."
Jaidev Janardana
CEO at Zopa Bank
Use of funds
- 01Fund acquisitions
- 02Continue product development
- 03Scale operations