UK online lender Zopa valued at $1 billion in SoftBank-led funding round

LONDON – The opening of the online lending program Zopa has raised $ 300 billion from SoftBank, and has brought significant economic benefits to the European economy.

The company is already worth $ 1 billion after investing in new investments, according to correspondence and extensive negotiations, becoming the new European fintech up to the “unicorn” level. The best reason for anonymity is that information has not yet been published.

Founded in 2005, Zopa came to life as an assistant to one provider, connecting providers and lenders through an online platform. The company has already started transforming its systems into adult banking, after obtaining a banking license in the UK but is still operating in the affiliate market.

Zopa announced a credit card and account last year, with the hope of winning a major share of Britain’s financial business and becoming a giant like Barclays and HSBC. To date, it has raised $ 801 billion in investments and attracted 150,000 credit card buyers.

“Our balances are growing rapidly,” said Jaidev Janardana, CEO of Zopa.

Zopa is one of the merchants who is trying to waste part of the revenue. Neobankers like Monzo, Revolut, and Starling have been popular over the past decade, attracting millions of consumers with free credit in the air. But now they are struggling to profit.

Starling fell in love with blacks for the first time last year and said he is on his way to earning his first annual salary. Revolut grossed 167.8 million pounds ($ 230.6 million) with a loss in 2020, while Monzo lost $ 180 million. Around the end of last year, Revolut managed to fall.

Zopa is “cheaper” than its competitors, Janardana said, adding that the company aims to profit after 10 weeks.

“[Softbank] agrees that the use of modern technology by AI, allows us to quickly and experiment with stable people because we bring the best price and success to make these decisions.

Zopa said it generated $ 28 million in the first half of 2021, more than double what it had at the end of 2020. The company has high expectations.

Janardana believed that Zopa would eventually become one of the “Ten Hundred” lent by Britain.

He said: “Our view of competition hasn’t changed much – it’s still a huge legacy.”

Fintechs raised more money this year as farmers saw them spend money to accelerate cash flow during the first coronavirus. Klarna earned $ 1.6 billion in two shares, while Revolut invested $ 800 million. SoftBank invests in both companies.

IPO plans

Zopa says the new fundraiser will take place in front of the community at the end of the first project. Janardana is trying to bring the business into the fourth quarter of 2022. But the start of the stock market comes after Zopa has shown a “stable fund record,” he said.

“Thanks to the money we receive, it allows us to move forward or backward, depending on market conditions,” Janardana said, adding that the London market is a “normal place” for us.

Following Brexit, the United Kingdom is trying to attract several fast-growing companies to its stock market. The changes introduced earlier this year will allow London to set its own rules for local businesses and enter.

Together with SoftBank, Zopa has a new investment portfolio sponsored by the management company Abu Dhabi Chimera Capital and retailers IAG Silverstripe, Davidson Kempner, and Northzone.

Zopa is one of the few financial technologies in the public credit market that still operates in an integrated market. Opponent Domini RateSetter closed its P2P business after selling loans to the British Tube Bank and the US

Janardana was asked if Zopa could participate in its P2P, but said the company was researching the market.

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