UK neobank Zopa Group is weighing an acquisition to secure a foothold in the Northern European market, reported Bloomberg citing CEO Jaidev Janardana.
The SoftBank Group backed lender is considering the purchase of a local bank or fintech in Germany or Scandinavia.
Speaking in an interview, Janardana said Zopa is searching “opportunistically” for suitable targets but stressed that its primary focus remains on expanding its UK operations.
Zopa, which began as a peer-to-peer lender over two decades ago, was granted a full banking licence in 2020.
In the past year, Zopa reported a profit increase to £65m ($87m) and expanded its loan book by 23% to £3.8bn. Its customer base stands at nearly 2 million.
Should Zopa proceed with an acquisition abroad, it would follow the example of other UK digital banks expanding internationally.
Monzo Bank obtained an EU licence in Ireland, and OakNorth is close to finalising a US bank acquisition.
Zopa’s most recent valuation topped $1bn after an investment round led by A.P. Moller Holding A/S in late 2024.
The company has made domestic acquisitions, including Rvvup last year and DivideBuy in 2023.
Janardana said that the company does not intend to raise additional equity for lending at this time due to its profitability but may issue further regulatory debt instruments such as additional Tier 1 and Tier 2 capital.
An initial public offering remains a “long-term” goal and is not planned for the near future, he noted.
Janardana said a secondary sale could be considered if shareholders seek liquidity.
Recently, Zopa introduced two investment funds aimed at new investors.
The company will apply next week for authorisation under the Financial Conduct Authority’s targeted support regime, which permits firms to offer standardised investment advice to consumers with similar profiles.
