India’s Wadhawan Group takes stake in Zopa

ZOPA has raised £40m in a fresh equity fundraising round, led by Indian conglomerate Wadhawan Group.

The deal is set to be announced in the next few weeks, according to Sky News who first reported the story over the weekend.

News of the funding round comes just a fortnight after Zopa became the first of the ‘big three’ P2P lenders to gain full authorisation from the Financial Conduct Authority.

The world’s oldest P2P lender announced last week that it is launching its Innovative Finance ISA on 15 June, subject to HMRC approval, which should further affirm its credibility as a mainstream investment product.

Zopa, which announced its plans late last year to apply for a banking licence, has been tweaking its business model recently. It is winding down its provision fund, which it said was no longer needed as a result of tax rule changes.

Zopa declined to comment on the new fundraising to Sky News.

Peer2Peer Finance News has contacted Zopa for comment.

Read more: Zopa becomes first UK P2P lender to hit £2bn milestone