"Zopa meets customer needs by focusing on how they borrow and save, the two things that have most impact on their finances."
The round was led by Softbank Vision Fund 2 and the deal is currently pending regulatory approvals from the PRA and the FCA.
The funding will be used to meet the capital requirements of Zopa Bank’s balance sheet.
Zopa acquired its banking license last year and is regulated by the FCA and the PRA. A banking license means that Zopa is held to the same standards as major high street banks and its deposits are protected by the FSCS up to £85,000.
Jaidev Janardana, CEO at Zopa, said: “In a very crowded ecosystem that often focuses on current accounts or other free money management offerings, Zopa meets customer needs by focusing on how they borrow and save, the two things that have most impact on their finances.
“Softbank Vision Fund 2’s investment into our future is a clear validation of Zopa’s responsible, sustainable and profitable approach to lending, our strong unit economics, and our vision to build the UK’s strongest performing bank with the most happy customers."
Sourav Sen, investor for SoftBank Investor Advisers, commented: “We believe Zopa’s fast-growing market penetration reflects high customer demand for adaptable financial services within a usable platform that can be customized to their specific needs. Zopa is fast emerging as a leading player in the UK’s nascent neo banking sector and we are proud to partner with Jaidev and the team on this journey.”
Minister for Investment, Gerry Grimstone, added: "Softbank's investment in Zopa's digital banking platform is a testament to the UK's enduring strength as a global hub for investment, built on our competitive economy, cutting-edge innovation and world-leading capability across areas like science, services, and research and innovation. The Global Investment Summit will demonstrate how we can use inward investment to nurture technological developments and propel our economy towards a more prosperous, exciting future.”
