Zopa, a leading London fintech, has successfully secured a significant funding boost, paving the way for its upcoming current account launch in 2025.
- The latest funding round, led by A.P. Moller, reaffirms Zopa’s status as a unicorn, cementing its market position.
- Zopa’s venture into profitability marks a pivotal shift, with substantial profit increases anticipated in the coming year.
- Strategic collaborations, including partnerships with Octopus Energy and John Lewis, are set to broaden Zopa’s reach and service offerings.
- Despite IPO uncertainties, Zopa’s leadership remains confident, as they consider London as the potential listing venue.
Zopa, the prominent London-based fintech company, has successfully raised £68 million in a fresh funding round. This move comes as part of the company’s strategic preparations to launch their new current account product by 2025. The funding round was spearheaded by A.P. Moller, a major investor from Denmark, further bolstering Zopa’s financial standing without disclosing its current valuation.
A representative from Zopa highlighted that this fundraising round ‘cemented’ the company’s unicorn status and was regarded as an ‘up-round’ compared to previous funding rounds. Chetan Mehta, Head of Growth Equity at A.P. Moller Holding, emphasized Zopa’s commitment to customer-centric services, stating that the investment demonstrates confidence in Zopa’s profitable business model aimed at sustainable growth.
Achieving annual profitability for the first time in 2023 has marked a significant milestone for Zopa. The company reported a pre-tax profit of £15.8 million for the year ending December 31, 2023, a noteworthy reversal from a £26 million loss in the prior year. This profitable trajectory is set to continue, with forecasts projecting a doubling of profits in 2024 alongside a 35% revenue increase.
Zopa’s strategic direction includes key partnerships enhancing its service portfolio. Collaborations with Octopus Energy aim to penetrate the UK’s expansive renewable energy market through a buy now, pay later scheme. Similarly, a partnership with retail giant John Lewis enables Zopa to offer personal loans to 23 million customers, expanding its market footprint.
Though Zopa is prepared for a potential IPO, the timeline remains uncertain due to fluctuating market conditions in London. Despite this, CEO Jaidev Janardana expressed optimism about the company’s readiness to list, preferably choosing London as the venue, amidst a landscape where other tech firms have reconsidered IPO plans.
Zopa’s recent funding success and strategic advances position it strongly for future growth despite IPO uncertainties.
