Japanese investor SoftBank will take a £100m stake in Zopa as part of a major fundraising effort ahead of a planned public listing for the peer-to-peer lender and digital bank.
According to Sky News, SoftBank’s Vision Fund II will lead the funding round, although a number of other investors are also expected to take part.
The fundraise is set to value Zopa at more than £500m.
John Cronin, an analyst at Goodbody, said that the funding round will be formally announced next week and is expected to be the digital lender’s last major fundraising ahead of a planned public listing towards the end of 2022.
SoftBank has a history of supporting UK-based fintechs. It has taken stakes in OakNorth and Revolut over the past few years, and it has also backed the buy now, pay later platform Klarna.
Earlier this year, Zopa revealed its own plans to enter the lucrative buy now, pay later market.
Yesterday, Zopa announced the appointment of its first ever chief people officer, Helen Beurier. The platform said that Beurier would help to lead a talent drive ahead of an initial public offering (IPO).
The IPO is expected to take place next year, and it will mark the second P2P IPO, after Funding Circle’s £300m listing in 2018.