neobank raises

Peer-to-peer lending platform Zopa recently reached a major milestone in its journey from fintech pioneer to established neobank. The UK-based firm closed a series C equity round valued at more than $93 million, placing its overall valuation above the billion-dollar mark.

The funding round was led by IAG Capital Partners and included participation from Augmentum Fintech, Oxford Capital, Toscafund, and other investors. Even as initial investors, such as Bessemer Venture Partners, Accel and Lake Star, continue to remain part of the company.

In a statement, Zopa founder and CEO Jaidev Janardana said that the money raised in the new round of funding will be used to “solidify Zopa’s position as the leader in responsible digital lending in the UK.”

Since its launch in 2005, Zopa has established itself as one of the first of what is now a thriving fintech industry in the UK. Over the past 15 years, the firm has grown from a peer-to-peer marketplace for loans to a digital bank now offering a wide range of products and services, including personal and business loans, credit cards, and savings accounts.

The latest funding round positions Zopa to further its growth as a trailblazing neobank, bringing the company up to a new level and helping it stay ahead of the competition.

“Our ability to stay ahead of the competition not just in terms of products, technology and customer experience but also in terms of growth and financial performance has been the hallmark of Zopa,” Jaidev Janardana said.

In total, Zopa has now raised more than $285 million across four funding rounds, as it continues to carve out its position in the fast-growing neobank sector. The new money will help the firm accelerate its roadmap, including the launch of its next-generation, open API banking platform, Zopa X.

This latest round of funding at a billion-dollar+ valuation is a major milestone for Zopa, and a sign of how this once small and innovative fintech startup has grown into a major challenger bank in the UK.