P2P Lending Company Zopa Raises £20 Million Funding from Existing Investors

London-based peer-to-peer lending company Zopa has bagged £20 million in funding from its existing investors. The announcement comes after Zopa’s app-only bank picked up £250 million worth of deposits in just nine months following its launch last year. 

At present, nearly 27% of Brits have at least one account with a digital-only bank. That is three times more than what it was in 2019. It is safe to say that digital banking is growing in popularity driven by new technologies and product offerings. The arrival of the COVID-19 pandemic has had a positive influence on the adoption of digital banks in 2020. 

Zopa revealed that its digital bank performed well throughout the course of the pandemic and attracted new customers. 

SEE ALSO: Stripe Valuation Reaches $95 Billion after Recent Fundraising

More about the fundraising

Zopa raised a sum of £20 Million from existing investors which include Alternative Credit Investments and Augmentum. The latest fundraiser comes just nine months after Zopa launched its digital bank as well as a savings product. 

Zopa is set to utilize these funds to accelerate its growth when it firmly believes that demand for such products is on the rise. 

Despite facing delays in securing its full banking license, Zopa is now on a clear road to profitability. The increasing adoption of its new lendings and savings products is another factor that is contributing to its sustained growth. 

Jaidev Janardanam, CEO, Zopa, said that in under a year after launching the digital bank, Zopa has attained its goals, both in terms of balance sheet and the number of customers. He said, “This capital injection will enable us to continue on this accelerated path.” 

COVID-19 impact on customer behavior

It is hard to miss the impact the COVID-19 pandemic has had on different industries and people. The stringent lockdowns across the UK have changed customer requirements and behavior. 

Zopa has experienced a steep rise in demand for access to credit as customers look to lead a normal life again. The credit quality of loans has been on the higher side due to the lack of discretionary spending and high savings during the pandemic. 

More about Zopa

Based in London, Zopa was founded by Giles Andrews, David Nicholson, Richard Duvall, Tim Parlett, and James Alexander in 2005. After securing its full banking license, the neo bank launched an innovative credit card and Fixed Term Savings account for customers in the UK. Currently, Zopa has managed to attract £250 million in deposits and crawled into the top 10 credit card issuers list in the UK

Image Source:  Sale photo created by jcomp – www.freepik.com

Source:

[1] Barton. C (2021) “Digital banking statistics 2021” Finder [Online] available from:

https://www.finder.com/uk/digital-banking-statistics#:~:text=in%20the%20UK.-,The%20latest%20stats,14%20million%20people%20(2021).&text=4%20in%205%20(80%25),to%20a%20digital%2Donly%20bank.

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

We will be happy to hear your thoughts

Leave a reply

ToolsMetric
Logo
Compare items
  • Total (0)
Compare
0