The world’s largest technology investment engine is to buy shares in Zopa, a British fintech that has revived its fate after the horrific period of almost losing its banking license.
Sky News has learned that SoftBank’s Vision Fund II is leading a funding round in which more than £ 100 million of new capital will be injected into Zopa.
The funding, which is likely to be announced next week, is expected to be the last major financing of a digital bank, a peer-to-peer lender, ahead of a public flotation scheduled for the end of next year.
According to one shareholder, many other investors are expected to participate in the round, with Zopa worth more than £ 500 million ($ 648 million).
The deal adds Zopa to FinTech’s growing stables in Europe, backed by SoftBank’s two vision funds.
In the UK, it holds shares in OakNorth and Revolut, the latter receiving round vision fund funding, making it one of the UK’s most valuable tech companies.
SoftBank also supports Europe’s most valuable fintechs, the Klarna, Buy Now and PayLater platforms.
Zopa’s new reputation marks a major shift for management, led by CEO Jaidev Janardana, and will put it on track to become the UK’s latest technology, the Unicorn, when it’s released.
Founded in 2005, Zopa has become a pioneer in the fast-growing peer-to-peer sector, raising tens of millions of pounds from investors to expand its business.
However, 2019 experienced a difficult time and was forced to scramble to raise £ 140m to avoid losing a fledgling banking license.
New investors in the round are led by US-based private investment firm IAG Capital Partners and backed by existing long-term shareholders such as listed group Augmentum Fintech.
Despite the recovery of reputation, the performance improvement of Zopa is not completely without problems. Times reported last week that FinTech suffered a nine-day IT outage that prevented investors from withdrawing money.
JP Morgan advised Zopa on the latest funding. This was seven months after existing shareholders injected £ 20m to accelerate the expansion of the banking sector.
The identities of other new investors were unknown on Thursday.
According to Zopa, it is already one of the top 10 credit card issuers in the UK, attracting more than 100,000 customers in nine months.
Earlier this year, there was strong demand for personal loans and automotive financial products, while customer deposits exceeded £ 400m.
Zopa added that banks are on track to achieve profitability by the end of the year, making them one of the fastest challenging banks to reach this milestone.
“We look forward to leveraging the momentum we have gained to further expand our products and services and serve more customers,” said Janardana this year.
“Our trajectory aims to be one of the fastest digital banks to achieve profitability. [and] We will continue to build from that foundation in the IPO [initial public offering] It is already on the horizon in the fourth quarter of 2022. “
Softbank and Zopa declined to comment.
Vision Fund of tech giant SoftBank to support the resurrected UK digital lender Zopa | Business News
Source link Vision Fund of tech giant SoftBank to support the resurrected UK digital lender Zopa | Business News