Zopa, Europe’s largest peer-to-peer lending company, has closed a GBP15m (USD25m) funding round from Arrowgrass Capital Partners.
Zopa enables savers to receive better rates by lending money to people looking for low cost loans.
Its customers have lent over GBP455m through the platform.
Zopa will use this new round of investment to support growth and to increase awareness of Zopa’s rates and service among a wider audience of UK consumers.
Arrowgrass Capital Partners is a European focused alternative asset manager, headquartered in London, with assets under management of approximately USD4.6bn. Henry Kenner, CEO of Arrowgrass, has joined the Zopa board as a non-executive director.
Zopa lent GBP180m in 2013 with projections to reach GBP500m lent in total ahead of regulation due in April 2014. The UK's peer-to-peer lending industry is growing very fast and is set to lend GBP1bn per annum by 2015.
Giles Andrews, CEO and co-founder of Zopa, says:, “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.”
This round follows a December 2012 investment, led by Augmentum Capital, which is backed by RIT Capital Partners, the FTSE-listed GBP2bn investment trust in which Jacob Rothschild and family are substantial investors. Other major investors include Bessemer Venture Partners.
