Zopa Bank: UK fintech doubles profit amid IPO speculation
Digital bank Zopa doubled its pre-tax profit in its second full year of profitability as the London fintech continued its upward trajectory ahead of a possible IPO.
The Canary Wharf-based business pocketed £34.2m in the 2024 financial year, up from £16.8m in 2023.
Revenue grew 30.2 per cent to £303.4m. This was driven by an over 60 per cent surge in its deposits base to £5.5bn.
The boost in income offset a 28 per cent increase in operating expenses, which hit £105.3m.
Zopa recruited 122 members of staff amidst its 2024 expansion. The fintech announced in February it would double its office footprint in a move to Canary Wharf, which the firm described as a “statement of intent”.
Jaidev Janardana, chief executive at Zopa Bank, told Morning Wire: “We have created a business model where we win when our customers win, and our interests are very aligned with our customers – we feel that’s a more sustainable way of creating a brand and running business.”
Zopa Bank revealed to Morning Wire it was set to smash its “2025 Fintech Pledge” next month which targeted “25m positive actions” to improve financial resilience.
The neobank launched the pledge with fintech peer ClearScore in 2022 and sought to help Brits battle the cost of living crisis. This involved helping consumers with actions such as lowering monthly bills, building credit and moving savings to high interest-yielding accounts.
Zopa: Markets not ready for IPO
Zopa is eyed as one of London’s most hotly anticipated IPOs, but the tariff-induced market turmoil has derailed any discussions.
Whilst a floatation was not a priority for the firm, Janardana said the “business was ready, the markets need to be ready as well.”
He added: “I feel that free opening of IPOs is far out and the current market conditions do not have that at all.”
But, the fintech boss said he will “keep an eye on the public markets” and had “been encouraged by what we have seen in terms of the UK public market performance.
“We do not have a timeline. We’re just really focussed on building the business.”
The fintech cemented its unicorn status at the end of 2024 after raising £68 to tip its valuation over $1bn.
The fintech reduced its share capital by around £500m to “increase distributable reserves” and “align with strategic objectives”.
Zopa said the reduction “does not relate to any planned dividends” but was instead part of a “process to simplify and optimise our capital structure, which gives us more flexibility in the future.”
The firm received a £7m funding investment from its parent company Zopa Limited in March 2025, which it said was an extension to the £68m fundraising in December 2024 and would be used for “further growth”.
The last year included a flurry of partnerships for the neobank.
Zopa struck a deal with Britain’s electricity supplier, Octopus Energy, to enter the UK’s £23bn renewable energy market and joined retail giant John Lewis to offer personal loans to its 23m customers.