The latest injection of capital could see Zopa become a unicorn before it IPOs in 2022.
Image source: Zopa’s CEO Jaidev Janardana/Zopa
Not one to miss out on a good fintech trend, it looks like Zopa could be the latest fintech to secure itself a ‘mega round’.
The digital bank has reportedly hired US investment bank Goldman Sachs to help guide it through an upcoming £100m fundraise, according to Sky News.
Just four months after the fintech secured a £20m funding round from existing investors, Zopa’s latest fundraise could see its valuation top £500m, putting it well on track to become another fintech unicorn.
The sizeable valuation and funding injection is a nod to how well Zopa has performed over the last 12-18 months.
Since launching its credit cards just nine months ago, Zopa has already issued more than 100,000 credit cards and has attracted over £400m in customer deposits since becoming a fully-fledged bank just over a year ago.
The challenger bank says it’s on track to reach profitability by the end of the year, largely thanks to its popular lending products that have helped many get through the Covid-19 pandemic.
In total, Zopa has dished out more than £6bn in loans to the UK market, with Zopa giving its customers a decision in minutes.
A month ago, the fintech also revealed that it was on track to target a 2022 IPO, joining the likes of PensionBee and Wise and adding fuel to the London listing boom.
Zopa started off its life as a peer-to-peer lender all the way back in 2005, before gradually moving into the digital banking space, culminating in it securing its full banking licence last year.
AltFi reached out to Zopa, but it declined to comment.