Zopa, a UK-based digital bank, has secured £80m ($106.4m) in Additional Tier 1 (AT1) capital from both current and new investors.

It follows an £80m ($106.4m) equity fundraising in November 2024. The bond issuance took place on the International Securities Market (ISM) of the London Stock Exchange (LSE).

Jefferies was the structuring adviser and sole lead manager for the transaction that was oversubscribed by more than two times, with over 20 investors taking part.

The funds will be utilised to enhance Zopa’s balance sheet while avoiding shareholder dilution as the company prepares to launch its flagship bank account.

The new bank account aims to offer competitive value and convenience to customers, addressing a broader range of financial needs.

Zopa’s pre-tax profits doubled to £34.2m ($45.4m) for the financial year ending 31 December 2024, alongside a 30.2% increase in revenue.

In addition, Zopa has formed partnerships with major entities such as Octopus Energy to enter the UK’s £23bn ($30.5bn) renewable energy sector and John Lewis to provide personal loans to its 23 million customers.

Zopa will integrate its digital-first personal loan product into the John Lewis Money website, providing the retailer’s customers with straightforward and transparent financing options.

Since its bank launch in 2020, Zopa has attracted £5.5bn ($7.31bn) in deposits and currently holds over £3bn ($3.9bn) in loans on its balance sheet.

The company employs nearly 850 staff and plans to expand its office space with a move to Canary Wharf.