Zopa eyes acquisitions in different sectors
Zopa is eyeing acquisition opportunities in a variety of sectors as the digital bank continues to launch into new areas to grow its business.
A spokesperson said the bank is open to deals and is not focusing on any specific sector. Instead, it is focused on identifying and evaluating a “wider pool of opportunities in different sectors, not only small- and medium-sized enterprise (SME) lending”.
Previously, the group’s chief executive Jaidev Janardana (pictured) had said the bank was looking at potential acquisitions in the SME lending space at the Sifted Summit.
Zopa transformed from a peer-to-peer lender into a fully-fledged bank after it received a UK banking licence in June 2020. In June this year, the bank unveiled a buy-now-pay-later offering.
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It reached profitability in April after raising £220m in a funding round led by Softbank Vision Fund 2 in October 2021.
“Acquisitions form part of the growth journey of most technology firms looking to scale, and feature in their regular menu of options that support accelerated growth,” the spokesperson added.
“Overall Zopa is well positioned to explore M&As as it has always focused on strong unit economics and monetisation. Additionally, with a banking license and a multi-product eco-system it has diversity of revenue and funding, as well as strong products that have high growth rates.”
Zopa is reportedly in talks to raise $100m (£89.2m) to fund its expansion ahead of a stock market float.
Read more: Zopa’s P2P business posted £6m loss in final year