SoftBank-Backed Fintech Zopa Plans Profit Doubling in 2024, Current Account Launch Set for 2025
British fintech Zopa, supported by Japanese conglomerate SoftBank, is on track to double its pre-tax profits this year, anticipating a significant rise in revenue driven by heightened demand for its digital banking services. The CEO, Jaidev Janardana, revealed to CNBC that Zopa expects to achieve over £300 million in revenue for 2024, reflecting a 35% growth from the previous year’s £222 million. These projections are currently based on unaudited figures.
Zopa’s financial growth aligns with its plans to diversify its product offerings, including launching a current account in 2025. The bank, which operates exclusively in the UK, presently provides credit cards, personal loans, and savings accounts via a mobile platform, comparable to other digital banking services like Monzo and Revolut, which operate without physical branches.
“The business is performing exceptionally well in 2024, meeting or exceeding all targets,” Janardana stated. He attributed this success to an improving economic climate in the UK, although he acknowledged the ongoing challenges for consumers. Zopa’s offerings, which often feature higher savings rates than traditional banks, are increasingly relevant in the current market, according to Janardana, and have helped drive the company’s growth even amid selective lending practices.
Looking forward, Zopa plans to introduce a current account that will enable users to manage their finances with more flexibility, aiming to rival mainstream banking services like HSBC and Barclays. Janardana assured that this account will provide a “slick” user experience, incorporating features like viewing multiple accounts through one interface and competitive savings rates.
On the topic of a potential initial public offering (IPO), Janardana clarified that an IPO is not an immediate focus. Although Zopa had initially considered going public a few years ago, challenging market conditions led to a delay. However, he suggested that a more favorable IPO climate might emerge in the U.S. next year, with Europe potentially following by 2026. Zopa has benefited from continued backing from its long-term investors, who remain supportive of its growth trajectory.
In 2023, Zopa bolstered its leadership team, bringing on Peter Donlon, former CTO of Moonpig, as CTO, and Kate Erb from KPMG as COO. The firm also raised $300 million in 2021 through a funding round led by SoftBank, achieving a valuation of $1 billion.
