Limited Time Offer
Get $1000 towards your
first investment
Start investing in private markets with Linqto – your access to disruptive startups and pre-IPO companies.
*Terms and conditions apply. See details
Zopa, a UK-based digital bank and former peer-to-peer lending pioneer, has achieved its first full year of profitability in 2023, posting a pre-tax profit of £15.8 million. This marks a significant turnaround from the £16 million loss reported in the previous year. The company has grown its customer base to one million, with a deposit base of £3.4 billion and a loan balance of £2.7 billion.
Since pivoting from P2P lending to become a traditional bank in 2021, Zopa has focused on savings and credit products. The company now plans to expand its offerings by introducing current accounts for existing customers by the end of the year. This diversification of services could potentially strengthen Zopa's market position and appeal to investors.
Zopa has long expressed interest in going public, with profitability being a key milestone towards this goal. CEO Jaidev Janardana has stated that the company is ready for an initial public offering (IPO) and maintains a preference for listing in London. However, he acknowledges that current market conditions and low investor sentiment in the banking sector may delay any potential listing.
Despite Zopa's readiness, Janardana believes it is unlikely that any UK fintech companies will go public this year due to the challenging market environment. This cautious outlook suggests that while Zopa is preparing for an eventual IPO, the timing remains uncertain and dependent on broader market factors.
As Zopa continues to grow and expand its services, investors and industry observers will be watching closely for any developments regarding its potential public offering. The company's ability to maintain profitability and navigate market challenges will likely play a crucial role in determining the timing and success of any future IPO.
Get $1000 towards your
first investment
*Terms and conditions apply. See details
While Zopa's IPO prospects remain uncertain, investors interested in the fintech and digital banking sector don't have to wait. At Linqto, we offer members access to interests in promising private companies before they go public. Our platform provides opportunities to invest in potential fintech leaders like Zopa, with lower minimum investments than traditional private equity options. This allows you to potentially benefit from the growth of innovative financial companies before they hit the public markets.
1 - Finextra - Jaidev Janardana, CEO of Zopa, has blamed the media for the UK fintech sector’s focus on valuations on the media’s coverage.
4 - Biztoc.com - SoftBank-backed fintech aims to offer current accounts to existing customers by the end of 2024 #softbank
5 - Finextra - UK digital bank Zopa has swung to its first full year profit as it prepares to start offering current accounts and eyes a future IPO.
*These comments should not be interpreted to mean that the company is formally pursuing or foregoing an IPO. The information provided above is based on current online discussions and is not intended as investment advice. Linqto does not endorse or guarantee the accuracy of this information, and we strongly recommend conducting your own research or consulting with a professional advisor before making any investment decisions. Linqto cannot be held liable for any investment outcomes resulting from the use of this information.
