British digital bank Zopa is strengthening its management team with key hires as it seeks to drive growth and prepare for a potential initial public offering (IPO). Zopa has appointed Peter Donlon, the former CTO of Moonpig, as its CTO, and Kate Erb, a qualified chartered accountant with extensive financial services experience, as its COO. The move reflects Zopa’s focus on maturity and user growth in anticipation of an eventual IPO. Although Zopa had planned to go public last year, it postponed the ambition due to unfavorable market conditions for high-growth tech stocks. Zopa’s CEO, Jaidev Janardana, stated that while there are no immediate IPO plans, a listing could be considered by mid-next year if market sentiment improves.
Janardana emphasized the need for successful IPOs and improved market liquidity to support a public listing. Zopa aims to reach 1 million customers soon and has a long-term goal of 5 million users. The company faces competition from established banks and fintech firms like Monzo, Revolut, and Starling. Janardana hinted at potential growth strategies, including mergers and acquisitions, expansion into small business lending, and leveraging open banking capabilities to offer holistic customer experiences.
Zopa recently raised £75 million ($95.9 million) from investors and achieved monthly profitability in April 2022. The company aims to achieve full-year profitability by the end of 2024. While Zopa explores various opportunities, Janardana expressed caution regarding cryptocurrencies, stating that they are not suitable for retail consumers due to their complexity and lack of understanding among the general population. As of now, Zopa has no plans to offer crypto-related products to its customers.
