Arabnews24.ca:Friday 30 September 2022 10:57 AM: Zopa, the UK-based digital bank, is in talks to raise another round of funding in what is expected to be the last capital injection into the business before it seeks a public listing.
Sky News has learnt that Zopa is in detailed negotiations with new and existing shareholders about raising approximately $100m to fund its continued expansion.
Sources said a number of blue-chip financial institutions were involved in the discussions.
The fundraising is expected to value Zopa slightly in excess of the roughly-£750m price tag it attracted nearly a year ago, according to one investor.
That would represent a significant achievement in a funding environment for technology companies which has become increasingly difficult during the course of 2022.
Zopa was founded in 2004 and became a pioneer in the burgeoning peer-to-peer sector.
It has since pivoted to focus on more mainstream banking services.
More from Business
It experienced a rocky period in 2019, however, and was forced to scramble to raise £140m in order to avoid losing its fledgling banking licence.
New investors in that round were led by IAG Capital Partners, a US-based private investment firm, while it has also been backed by existing long-term shareholders such as the listed group Augmentum Fintech.
Last year, it brought in the SoftBank Vision Fund II as a substantial shareholder.
Zopa declined to comment.