SoftBank-backed Zopa

A British fintech company, Zopa, funded by SoftBank, seems to be doing well and will likely see pre-tax profits double in 2024, according to the CEO, Jaidev Janardana. The firm attracts customers through a menu of options in the form of credit cards, personal loans, and savings accounts as part of its digital banking services. The revenues of the company are likely to cross £300 million this year. Its revenue had jumped 35% from £222 million ($281.7 million) in 2023. According to Mr. Janardana, the expected growth is underpinned by strong demand for its products as well as a gradual recovery in the UK economy.

Zopa, for example has seen increased interest in its fintech offering with better savings rates than incumbents. The company managed to continue growing since the economy is still in a tight spot with terms of lending.

Looking forward, Zopa now plans to offer an even greater variety of products. It has announced it will launch a current account in 2025, with which users will be able to get on top of managing their money and spending, further positioning Zopa between the traditional players such as HSBC and Barclays and the challengers like Monzo and Revolut. Janardana said that the company’s current account will come with a slick user experience, combined with the feature of integrated account management and some top-of-the-league savings rates for evolving needs in a mature consumer.

Although Zopa had previously considered an IPO, the company has pushed back those plans amid volatile market conditions. Janardana also said that the company does not have a pressing need for a public listing, although he observed that if US IPO conditions do not deteriorate further, it will make a European listing possible as early as 2026.

In 2021, the company raised $300 million in funding, led by SoftBank and valued above $1 billion. The company also made key hires last year, including Peter Donlon as Chief Technology Officer and Kate Erb as Chief Operating Officer, to support its expansion.