London-based digital bank Zopa has raised £80 million in Additional Tier 1 (AT1) capital from a mix of existing and new institutional investors.

The funding will support the company’s next phase of growth, including the upcoming launch of its current account.

The issuance, completed on the International Securities Market (ISM) of the London Stock Exchange, enables Zopa to strengthen its balance sheet without diluting shareholders.

The transaction was managed by Jefferies, acting as Structuring Adviser and Sole Lead Manager. It was oversubscribed by more than two times, with participation from over twenty institutional investors.

This AT1 raise follows an €80 million equity fundraise in November 2024.

Both funding rounds strengthen Zopa’s financial position as it prepares to expand its offering into everyday banking.

Zopa reported a strong financial performance in 2024, with profits before tax doubling to £34.2 million and revenue increasing by 30.2%.

The company also announced partnerships with Octopus Energy to enter the UK’s renewable energy finance market and with John Lewis to offer personal loans to its customer base.

Since becoming a bank in 2020, Zopa has attracted £5.5 billion in customer deposits and holds over £3 billion in loans on its balance sheet.

In 2021, Zopa announced its latest fundraise of £220 million led by Softbank Vision Fund 2.

The company employs around 850 people and will soon move to larger premises in Canary Wharf to support its growth.

Zopa’s forthcoming current account aims to expand its role in customers’ financial lives.

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