Zopa has successfully raised £68 million from investors as it gears up to launch a new current account in 2025, reinforcing its position in the fintech market.
- The funding round was led by A.P. Moller from Denmark, marking it as an ‘up-round’ which reinforces Zopa’s status as a unicorn.
- Zopa achieved annual profitability in 2023 with a pre-tax profit of £15.8 million, a turnaround from the previous year’s loss of £26 million.
- The company forecasts doubled profits for 2024, attributing this to a 35% rise in annual revenue, and anticipates a potential IPO despite market uncertainties.
- Zopa expands its market reach through partnerships with Octopus Energy and John Lewis, offering innovative financial products to consumers.
Zopa, a prominent player in the London fintech scene, has successfully raised £68 million in a recent funding round with significant backing from A.P. Moller, one of Denmark’s largest investors. This strategic investment aligns with Zopa’s long-term objectives as it prepares to introduce a highly anticipated current account in 2025. A spokesperson confirmed that the funding round was classified as an ‘up-round’, which solidifies the firm’s status as a unicorn, even though the exact company valuation remains undisclosed.
Chetan Mehta of A.P. Moller Holding expressed confidence in Zopa’s market strategy, highlighting its customer-focused approach that reportedly adds sustainable value to the lives of UK consumers. He noted: ‘Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers,’ adding that the investment aligns with a commitment to sustainable, long-term growth.
In the financial year ending December 2023, Zopa reported achieving annual profitability for the first time, with a pre-tax profit of £15.8 million, reversing a previous loss of £26 million. The firm now projects a doubling of its profits in the coming year, driven by an expected 35% increase in annual revenue. This financial turnaround stokes anticipation around Zopa’s potential Initial Public Offering (IPO), which the company desires to pursue on the London Stock Exchange, despite prevailing uncertainties affecting tech listings in the city.
Further, Zopa is diversifying its business operations by entering the renewable energy sector through a partnership with Octopus Energy, showcasing a buy now, pay later model aimed at the £23 billion UK’s renewable energy market. In addition, by collaborating with retail giant John Lewis, Zopa aims to offer personal loans to its extensive customer base, indicating a strategic move to expand its consumer financial product offerings and enhance its market penetration.
Zopa’s strategic initiatives and financial performance position it as a robust player in the fintech sector, poised for future growth.
