ZOPA Group has announced a £140m investment from IAG Silverstripe, bringing the fundraising phase of the Zopa Bank launch to a close.
The news comes almost a year to the day since Zopa won its banking license with restrictions. According to Prudential Authority (PRA) rules, within 12 months of receiving this licence, new banks should be in a position to meet the capital requirements necessary to gain full permissions from the regulator.
The £140m fundraise will ensure that the group’s banking arm can meet these requirements. This will result in the lifting of any banking restrictions, paving the way for a full launch of the long-awaited Zopa Bank.
“This new funding means we have concluded the fundraising phase of our bank mobilisation,” said Jaidev Janardana (pictured), chief executive of Zopa.
“Definitive agreements to provide the funding have been finalised and are subject to final approvals including regulatory change of control.
“We continue to hold our bank licence with restrictions and are working closely with the regulators to gain our full licence. We are excited that that once approved, Zopa will be able to launch its bank alongside its peer-to-peer business and offer a broader set of products to our customers.”
The funding has been provided by IAG Silverstripe – an investment arm of IAG Capital, the private investment group specialising in digital and technology-led businesses. IAG Silverstripe has been a minority investor in Zopa since October 2018. The investment is subject to final approvals, including regulatory change of control.
Zopa’s bank is expected to sit alongside P2P business as part of the overall Zopa Group.