Zopa Bank has raised £80 million by issuing its debut bond on the London Stock Exchange’s International Securities Market (ISM), marking a new milestone in its evolution from fintech pioneer to full-fledged challenger bank.
The London-based firm, which began as a peer-to-peer lending platform in 2005 and secured a UK banking licence in 2020, attracted over 20 institutional investors in a deal that was reportedly oversubscribed. This latest raise follows an €80 million equity round in December 2024, and signals growing investor confidence in Zopa’s financial stability and growth trajectory.
“This is another strong vote of confidence in our business,” CFO Steve Hulme told City AM. “Following a successful equity round just six months ago, this non-dilutive capital strengthens our balance sheet and positions us firmly on the starting line for our bank account launch.”
The bond issue also gives investors a tradable security tied to Zopa’s performance, opening up new capital-raising avenues for the company as it scales.
Zopa Eyes Current Accounts and Product Expansion Amid IPO Buzz
Zopa is now gearing up to launch its own current account later this year, entering a space dominated by UK neobanks like Monzo and Revolut. The fintech has already begun trialling an interest-bearing current account and is considering subscription models and investment products as it broadens its service offering.
“We’re shifting gears to become the go-to bank providing unmatched ease and value to millions of Britons,” Hulme added.
While many expect Zopa to be among the next wave of fintechs to go public, the company says current market volatility makes an IPO unlikely in the near term. Still, with its bond listing now complete and fresh funding secured, Zopa appears well-positioned to ramp up its growth in 2025.
