Digital bank Zopa has raised £80m in Additional Tier 1 (AT1) capital from existing and new investors to accelerate growth.
It follows an £68m equity fundraise in November 2024.
Zopa says the funds will be used to strengthen its balance sheet without diluting shareholders as the bank prepares to enter everyday banking with the imminent launch of its flagship current account.
The transaction was completed on the International Securities Market (ISM) of the London Stock Exchange and was oversubscribed by over two times from 20+ investors. Following the transaction, Zopa Group Limited will be re-registered as an unlisted, public company within six months.
The ISM delivers access to high-quality issuers, robust transparency standards, and the credibility of a London-listed bond.
Zopa Bank, which only launched in 2020, doubled its full-year profits before tax to £34.2m for the financial year ending 31st December 2024 on a 30.2% revenue jump.
Its innovations enable customers to improve their financial health, gain easy access to better-priced credit and to benefit from saving products.
It recently partnered with Britain’s largest electricity supplier Octopus Energy to enter the UK’s £23bn renewable energy market, and with the retail giant John Lewis to offer personal loans directly to its 23m customers.
“Our latest capital raise is another strong vote of confidence in Zopa’s momentum and model,” said Steve Hulme, CFO.
“Following a successful equity round just six months ago, this non-dilutive capital strengthens our balance sheet and positions us firmly on the starting line for our bank account launch.
“With profits doubling, strategic partnerships scaling, and innovation firing on all cylinders we’re not just gaining speed – we’re shifting gears to become the go-to bank providing unmatched ease and value to millions of Britons.”
Zopa has attracted £5.5bn total deposits and currently has just over £3bn loans on its balance sheet. It has close to 850 employees.