Digital Bank Zopa Receives $92 Million Investment

UK-based digital bank Zopa has received $92 million from existing investors IAG Silverstripe, Uprising and Augmentum. The funding, which "enables and enhances" the company's unicorn status, brings Zopa's total to $880 million. Since launching its digital bank in 2020, Zopa has attracted $3.69 billion (£3 billion) in deposits. It has added more than $2.46 billion (£2 billion) in loans to its balance sheet. It has issued more than 400,000 credit cards.

Also Read: ChatGPT is the Fastest Growing App in History

Zopa, digital banking raised $92 million in this week

Zopa raised $92 million (£75 million) this week to bolster its digital banking capabilities, proving that the race is still strong in the competitive banking arena. The funding brings the UK-based company's total to over $880 million. While Zopa did not disclose an updated valuation, the company said it had "solidified and enhanced" its unicorn status. Zopa first became a unicorn in 2021 following a $304 million funding round.

Meanwhile, the lead investor of the round was not disclosed. Interestingly, SoftBank, the lead investor in the company's 2021 round, is not participating in today's investment. Zopa CEO Jaidev Janardana told TechCrunch that SoftBank is still an active board member. He also mentioned that today's funding includes investments from existing investors IAG Silverstripe, Uprising and Augmentum.

Founded in 2005, the former peer-to-peer lending platform launched its digital bank in 2020 and has since attracted $3.69 billion (£3 billion) in deposits. It has added more than $2.46 billion (£2 billion) in loans to its balance sheet. It has also issued more than 400,000 credit cards.

Zopa said today it will use the funding to pay down debt and accelerate mergers and acquisitions, which could start this quarter.