British digital bank Zopa said on Tuesday it had raised $300 million from investors, including Japan’s SoftBank Group, as the lender seeks to expand its business ahead of a possible listing next year.
The financing round values Zopa’s value at 750 million pounds ($1.03 billion), a source familiar with the details of the deal told Reuters.
The cash injection through SoftBank Group’s Vision Fund 2 is the latest in a flurry of investments by the Japanese financial firm in UK financial technology companies.
It also holds stakes in OakNorth, whose customers are small businesses, and digital banking app Revolut, which was catapulted to a valuation of $33 billion in July after an $800 million funding round led by SoftBank.
The new valuation of Zopa is a significant U-turn, having been valued at £354m in media reports in December 2019 after one of its investors cut his stake in the lender amid challenges to the peer-to-peer lending sector, from which Zopa originates.
Zopa also plans to expand into the UK’s booming “Buy Now, Pay Later” sector and join other lenders investing in the loan product, which allows buyers to defer payments on products such as clothing and electronics.
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