Peer-to-peer lending platform Zopa has raised 拢140m in investment as it gears up to become a fully-fledged challenger bank.
The figure, 拢10m more than the first reported sum earlier this week, has been secured before the expiration of its provisional banking licence, which required a raise of up to 拢150m before 3rd December.
The additional investment is expected to enable Zopa鈥檚 banking entity to fulfil its regulatory capital requirements, a key requirement for the lifting of restrictions on its bank licence.
The investment is subject to final approvals, including regulatory change of control. Zopa continues to hold its banking licence with restrictions and is working with the regulator to obtain its full licence.
Once approved, the investment will be provided by IAG Silverstripe, an investment arm of IAG Capital, the private investment group specialising in digital and technology-led businesses. IAG Silverstripe is an existing minority investor in Zopa, having invested in October 2018.
Jaidev Janardana, Zopa CEO, said the new capital would conclude the fundraising required to mobilise its pivot to become a bank.
鈥淒efinitive agreements to provide the funding have been finalised and are subject to final approvals including regulatory change of control,鈥� he said.
鈥淲e continue to hold our bank licence with restrictions and are working closely with the regulators to gain our full licence.
鈥淲e are excited that that once approved, Zopa will be able to launch its bank alongside its peer-to-peer business and offer a broader set of products to our customers.鈥�
Since launching its peer-to-peer technology in 2005, the firm said it has helped half a million people with personal loans.
Zopa鈥檚 bank will sit alongside its existing peer to peer business (Zopa Limited), as part of the overall Zopa Group.
To date, Zopa Limited has lent 拢5bn in unsecured personal loans to customers in the UK.