British digital bank Zopa has secured $303m (£220m) in the latest fundraising led by Softbank Vision Fund 2.

Several other existing investors including Silverstripe, Northzone and Augmentum also participated in the round.

In a blog, Zopa said: “This is our largest fundraise to date. It is a hugely exciting moment for Zopa and is a clear validation of our vision.”

According to a Reuters report, the latest fundraising increases Zopa’s valuation to more than $1bn. Earlier this year, it raised $28m (£20m) from current backers.

Future plans

The neobank said that it plans to use the proceeds to expand its business. It will seek to improve access to credit and saving products for UK customers.

Zopa also plans to expand to the ‘Buy Now, Pay Later’ sector within the next year.

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Zopa’s journey

Zopa started its journey in 2005 as a peer-to-peer (P2P) lending company. In 2016, the company announced its plans to launch a fully regulated bank.

It received bank licence last year and subsequently launched credit cards and savings products.

The blog post added: “Just over a year on from fully launching our bank, we’ve attracted £675m in deposits for our fixed savings accounts and issued 150,000 British Bank Award-winning credit cards, making us a top 10 credit card issuer.

“Our loan products, across both our personal loans and our online Hire Purchase car finance option, continue to grow and be loved by our customers.

“This year we’ve hit over £6bn in disbursed loans and we’re currently lending over £100m per year in car loans to keep people on the road.”