Crowdfunding loans site Zopa raises £15m
Startups 100-listed company will use Arrowgrass Capital funding to expand and market leading platform
Leading European peer-to-peer loans site Zopa today announced it has raised £15m from asset manager Arrowgrass Capital, set to fund a new phase of growth for the company.
Listed at number three of the 2008 Startups 100, Zopa was founded in 2005 by Giles Andrews as one of the first online peer-to-peer lending and borrowing marketplaces.
The service, which allows members of the public to lend money to businesses, claims its service offers a transparent and low-cost alternative to traditional bank loans by offering better rates to both borrowers and savers.
Since launch it has grown into one of the leading companies in the European alternative finance sector, with more than £455m of loans facilitated by the platform.
The firm was recently listed as one of the 2014 FinTech 50, an independent index of the “hottest” companies in the European financial tech market.
Alternative asset manager Arrowgrass’ funding will be used to support the continued rapid growth of Zopa, in particular funding “increased awareness” of Zopa’s offering amongst UK consumers.
It follows a previous round of investment in December 2012, led by Augmentum Capital, a fund backed by the £2bn RIT Capital investment trust in which prominent investment banker Jacob Rothschild and family are investors.
Giles Andrews, co-founder and CEO of Zopa, commented on the latest investment: “As Zopa enables borrowers to dramatically cut their borrowing rates, and savers to see their money grow at market-leading rates and with the security they deserve, it's win-win.
“This investment offers the opportunity to spread the benefits of Zopa further and faster.”