Peer-to-peer lending platform and digital financial institution Zopa landed some further funds this week, now that its new banking platform is beginning to take off.
The U.Okay.-based firm pulled in $28 million (£20 million) from current buyers, bringing its complete raised to $465 million.
Traders in at present’s spherical embody IAG Silverstripe, which led the spherical, in addition to Augmentum, Various Credit score Investments, Enterprise Founders, and others. The corporate will use the funds to assist the expansion of its digital financial institution.
Zopa secured its banking license final June and has since transitioned its platform from a peer-to-peer lending operation to a digital financial institution with a peer-to-peer lending possibility. Since that point, Zopa started providing financial savings accounts, which have reached $346 million (£250 million) in buyer deposits, and a credit card product that has made Zopa a prime 10 bank card issuer within the U.Okay. based mostly on new clients.
The brand new funding comes at a time when competitors amongst digital banks is at an all-time excessive. Zopa is poised to do properly within the battle for brand spanking new shoppers and deposits, nevertheless. The corporate has constructed a well-established shopper base, assets, and relationships because it was based in 2004 as a peer-to-peer lending platform.
Zopa CEO Jaidev Janardana echoes this. “Lower than a 12 months since launching our financial institution, we’ve got exceeded our plan for progress, each by way of clients and stability sheet,” he mentioned. “This capital injection will allow us to proceed on this accelerated path. Our robust entry to the U.Okay. financial savings and bank card markets reveals the natural enchantment of our merchandise and we’re joyful to have buyers who share our pleasure on the alternative to serve extra clients throughout extra product classes.”