Zopa, the London-based fintech, has successfully raised £68m in a significant funding round.
- A.P. Moller, one of Denmark’s largest investors, led the funding round, enhancing Zopa’s unicorn status.
- Zopa achieved annual profitability for the first time in 2023, forecasting doubled profits in 2024.
- The company plans to launch a new current account product in 2025, expanding its financial offerings.
- Zopa’s strategic partnerships in renewable energy and retail signal its commitment to innovation and growth.
Zopa, a leading London fintech company, has successfully raised £68 million from investors. This funding round was notably led by A.P. Moller, a prominent Danish investor with a net asset value of $32 billion. This significant investment has reinforced Zopa’s status as a unicorn company, although the precise valuation remains undisclosed. A spokesperson indicated that this was an up-round compared to previous investments, reflecting strong confidence from backers.
Financially, Zopa reached a significant milestone by achieving annual profitability in 2023, reporting a pre-tax profit of £15.8 million. This is a substantial turnaround from the previous year’s loss of £26 million. The company is optimistic about its future, projecting a doubling of profits in 2024 alongside a 35% increase in annual revenue. This financial health has heightened anticipation for Zopa’s potential Initial Public Offering (IPO). While the company has expressed readiness for a public listing, it prefers to list in London, though the exact timeline is unclear amid a challenging IPO market.
Zopa is strategically positioning itself for growth by preparing to launch a new current account product in 2025. This expansion is part of the company’s broader strategy to diversify and enhance its financial services. The fintech’s alignment with innovation is further demonstrated through recent partnerships. Zopa has joined forces with Octopus Energy, Britain’s largest electricity supplier, to explore opportunities in the UK’s substantial £23 billion renewable energy market with a buy now, pay later offering. Additionally, Zopa has teamed up with the retail giant John Lewis to provide personal loans to its extensive customer base of 23 million.
Chetan Mehta, Head of Growth Equity at A.P. Moller Holding, praised Zopa for its customer-focused approach, stating, “Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers.” This investor confidence underscores the robustness of Zopa’s business model and its alignment with sustainable, long-term growth strategies.
Zopa’s latest funding and strategic initiatives underscore its commitment to innovation and sustained growth within the financial sector.
