London-based neobank Zopa offers peer-to-peer (P2P) lending, pioneering auto finance solutions and more. Now the company has announced that it has pocketed £ 20million in funding from existing investors.
Focuses on growth
IAG Silverstripe led the investment alongside a large number of investors including Augmentum, Waterfall, Alternative Credit Investments and Venture Founders. Zopa will use the funds to fuel its growth when it feels there is more demand for the products.
Jaidev Janardana, CEO of Zopa said: “Less than a year after launching our bank, we have exceeded our growth plan, both in terms of customers and balance sheet. This capital injection will allow us to continue on this accelerated path. Our strong entry into the UK savings and credit card markets shows the organic appeal of our products and we are pleased to have investors who share our enthusiasm to serve more clients in more categories. of products.
Get competitive rates on savings
While many people and industries have been affected by COVID-19 and the lockdowns that have followed, there has been a shift in customer behavior and demands. Zopa has seen a continued need for access to credit as people look to do home renovations, buy cars and jump-start delayed wedding plans.
In addition, the credit quality of these loans was better than expected. Likewise, many people have managed to save during the pandemic due to the lack of discretionary spending. Zopa’s fixed-term savings product offers competitive rates on their savings.
Deposits worth £ 250 million
Zopa was founded in 2005 by Giles Andrews, James Alexander, Richard Duvall, David Nicholson and Tim Parlett. Nine months after obtaining its full banking license, the neobank Zopa launched successfully. Fixed term savings accounts and an innovative credit card for UK consumers.
the digital bank has already attracted over £ 250million in deposits. In addition, it is one of the top 10 credit card issuers in the UK in terms of new customers. This puts Zopa in a particularly strong financial position. The company has seen double sales since
Zopa is quite different from the previous growth and focuses on a proven lending capability that offers a clear path to profitability.