Comprehensive M&A data with integrated detailed company information

Zopa to receive GBP 400mn valuation in new fundraising plans: Sky News
Posted on Friday, 13 April 2018 13:43
UK-based peer-to-peer lender Zopa is in advanced negotiations with potential investors to seek around GBP 50.00 million in funding, helping advance the company to one of the largest financial technology (fintech) businesses in the country, Sky News reported.

Citing sources close to the matter, the broadcaster observed the simple loans and smart investment firm could be valued at GBP 400.00 million as a result of the deal, expected to be led by existing shareholders Wadhawan Global Capital.

That being said, talks to bring in new investors are taking place and the cash raised would be used to support regulatory requirements relating to the planned launch of a next generation bank, which, so far, Zopa has declined to comment on in the media.

The company intends to use the new funding as a pre-initial public offering (IPO) round of cash, and may pursue a stock market flotation in the next couple of years, Sky News reported.

Should the financing go ahead, it would take Zopa’s total to over GBP 125.00 million since launching in 2005.

The group, which has issued more than GBP 3.00 billion consumer loans since being founded, has been taking steps to compete with well-established retail banks and appointed former executives from big banks and revamping its governance structure in preparation for the launch of its own bank.

Just yesterday, Zopa announced plans to create separate boards for its peer-to-peer and banking arms as part of a governance shakeup, Sky News reported.

The new lending business will include newly recruited directors Richard Goulding and Peter Herbert, with Christine Farnish expected to become chairman of the group’s peer lending operations.

Zopa last raised GBP 32.00 million in June 2017 from investors including Wadhawan Group and Northzone Ventures, among others.

A potential stock market listing of the firm has been reported since 2015, when the Daily Express suggested the London-headquartered firm is looking to conduct a future IPO.

© Zephus Ltd