Digital bank Zopa raises £80m

Digital bank Zopa has raised £80m in Additional Tier 1 (AT1) capital from existing and new investors ahead of a period of accelerated growth. This follows an EUR 80m equity fundraise executed in November 2024.

The bank 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 (PLC) within six months.

Zopa Bank doubled its full-year profits before tax to £34.2m for the financial year ending December 31 2024 on a 30.2% growth in revenue.

Zopa recently partnered with 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.