Digital bank Zopa has raised over £68m (€80m) in new equity funding to help it fast track the launch of a new Generative AI solution.
The GenAI solution seeks to ‘reinvent’ how customers interact with their money and is set for launch in 2025.
The funding round was led by A.P. Moller Holding with significant participation from existing investors. A.P. Moller Holding is one of the largest direct investors in Denmark with $32bn of Net Asset Value. Its objective is to build and develop businesses by driving long-term value and growth through engaged and valued ownership.
Chetan Mehta, Head of Growth Equity at A.P. Moller Holding, said: “We are excited to support Zopa on its journey to revolutionize the UK’s financial services industry. Zopa’s remarkable customer centricity enables it to deliver lasting value and positive impact in the financial lives of millions of UK consumers.
“Today’s investment also reflects our confidence in Zopa’s robust and profitable business model that aligns with our commitment to sustainable, long-term growth.”
The funding will be used to support Zopa’s continuous growth as it prepares to launch its new current account offerings in 2025.
Some of Zopa’s solutions enable customers to improve their financial health, gain access to better priced credit, access market leading saving products, and to transfer card balances that helps pay down credit faster.
The digital bank also recently partnered with the UK’s largest electricity supplier Octopus Energy to enter the country’s £23bn renewable energy market, and with retailer John Lewis to offer personal loans directly to its customers.
Jaidev Janardana, CEO at Zopa Bank said: “Today’s fundraise validates our financial performance and growth potential.
“Since launching our bank in 2020, we’ve consistently offered financial products that offer great value and ease to our customers, supporting our vision to build Britain’s best bank.
“We are thrilled to have investors who share our excitement at the opportunity to serve more customers across more product categories as we aim to become the go-to bank for millions of consumers.”
Unlike many fintechs or e-money institutions, Zopa holds a full banking license, ensuring it adheres to the same regulatory standards as traditional banks. Customers’ deposits are safeguarded by the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 per account.
