Jaidev Janardana, CEO of UK digital bank Zopa.
Zopa
LISBON, Portugal – British online lender Zopa will double its profits and increase its annual revenue by more than a third this year amid rising demand for banking services, the company’s CEO told CNBC.
Zopa is posting revenues of around £222 million ($281.7 million) in 2023 and expects to pass the £300 million revenue milestone this year – which would give it an annual jump of 35%.
The 2024 estimate is based on unaudited internal figures.
The company also said it expects to double its pre-tax profit by 2024, after making £15.8m last year.
Zopa, the regulated bank backed by Japanese giant SoftBank, plans to enter the world of current accounts next year as it looks to focus more on new products.
The company now offers credit cards, personal loans and savings accounts offered through a mobile app – similar to other digital banks such as Monzo and Revolut that do not operate physical branches.
“The business is doing well. By 2024, we have met or exceeded our plan in all metrics,” CEO Jaidev Janardana told CNBC in an interview Wednesday.
He said the strong performance came from behind gradually increasing sentiment in the UK economy, where Zopa operates exclusively.
Commenting on Britain’s macroeconomic situation, Janardana said, “While it has been a rough few years, in terms of consumers, they continue to feel a little less pain this year than last year.”
The market is “still tight,” he said, adding that fintech offerings such as Zopa – which typically offer higher savings rates than high-end banks – are becoming “more important” during this time.
“The proposition is becoming more relevant, and when it’s difficult for customers, we have to be more restrictive about who can give loans,” he said, adding that Zopa can still grow despite that.
A big priority for the business going forward is product, Janardana said. The company is developing a current account product that will allow users to spend and manage their money more easily, in a similar way to banking providers such as HSBC and Barclaysas well as fintech upstarts such as Monzo.
“We believe there is much more for consumers to do in the account space today,” Janardana said. “We expect to open our current account with the general public next year.”
Janardana said consumers can expect a “slick” experience from Zopa’s current account offerings, including the ability to view and manage multiple bank accounts from one interface and access to competitive savings rates.
IPO ‘not top of mind’
Zopa is one of the fintech companies being considered as a potential IPO candidate. About two years ago, the company said it was planning to go public, but then decided to put those plans on ice, as high interest rates hurt tech stocks and the IPO market was frozen in 2022.
Janardana said he doesn’t see a public listing as an immediate priority, but said he sees signs pointing to a better U.S. IPO market next year.
This means Europe is becoming more open to IPOs happening in 2026, according to Janardana. He did not say where Zopa will open to the public.
“Honestly, it’s not the most important thing for me,” Janardana told CNBC. “I think we continue to be fortunate to have supportive, long-term shareholders who also support future growth.”
Last year, Zopa made two senior hires, appointing Peter Donlon, a former chief technology officer at online card retailer Moonpig, as its own CTO. The company also hired Kate Erb, an accountant from KPMG, as chief operating officer.
The company raised $300 million in a funding round led by Japanese technology investor SoftBank in 2021 and was eventually valued at $1 billion by investors.
