LONDON, UK: Augmentum Fintech plc, the UK’s only publicly listed investment company focussing on the fintech sector, is making a further £10 million investment into digital bank Zopa, as part of Zopa’s latest funding round.
Zopa’s £220 million round is being led by SoftBank Vision Fund 2 with participation from Chimera Abu Dhabi, and is conditional on regulatory approval. Augmentum is investing alongside other existing investors IAG Silverstripe, Northzone, and Davidson Kempner Capital Management.
Zopa was founded in 2005 as the UK’s first Peer-to-Peer lending company. In 2020 Zopa was awarded a UK banking licence, and is now regulated by both the PRA and the FCA, allowing it to offer a wider product range, including fixed term savings backed by FSCS protection, and a credit card.
The funding will be used to meet the capital requirements of Zopa bank’s rapidly growing balance sheet. Since commencing operations in June 2020, Zopa bank has attracted £675 million in deposits through its fixed savings accounts, and has issued 150,000 credit cards becoming a top 10 credit card issuer in just over a year from launch. In 2021 Zopa was awarded Best Personal Loan Provider and Best Credit Card Provider by the British Bank Awards, and Best Online Savings Provider by the Moneynet Personal Finance Awards.
Tim Levene, CEO of Augmentum Fintech, said: “We are delighted to support Zopa’s continued growth. Since launching the bank, they have exceeded their growth plan, both in terms of customers and balance sheet. This capital injection of £220m will enable them to continue on this accelerated path and further evolve their diversified product set”.
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