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Jaidev Janardana, CEO of U.K. digital bank Zopa.
Zopa LISBON, Portugal — British online lender Zopa is on track to double profits and increase annual revenue by more than a third this year amid bumper demand for its banking services, the company's CEO told CNBC. Zopa posted revenues of £222 million ($281.7 million) in 2023 and is expecting to cross the £300 million revenue milestone this year — that would mark a 35% annual jump.
The 2024 estimates are based on unaudited internal figures. The firm also says it is on track to increase pre-tax profits twofold in 2024, after hitting £15.8 million last year.
Zopa, a regulated bank that is backed by Japanese giant SoftBank , has plans to venture into the world of current accounts next year as it looks to focus more on new products. The company currently offers credit cards, personal loans and savings accounts that it offers through a mobile app — similar to other digital banks such as Monzo and Revolut which don't operate physical branches. "The business is doing really well.
In 2024, we've hit or exceeded the plans across all metrics," CEO Jaidev Janardana told CNBC in an interview Wednesday. He said the strong performance is coming off the back of gradually improving sentiment in the U.K.
economy, where Zopa operates exclusively. Commenting on Britain's macroeconomic conditions, Janardana said, "While it has been a rough few years, in terms of consumers, they have continued to feel the pain slightly less this year than last year." The market is "still tight," he noted, adding that fintech offerings such as Zopa's — which typically provide higher savings rates than high-street banks — become "more important" during such times.
"The proposition has become more relevant, and while it's tight for customers, we have had to be much more constrained in terms of who we can lend to," he said, adding that Zopa has still been able to grow despite that. A big priority for the business going forward is product, Janardana said. The firm is developing a current account product which would allow users to spend and manage their money more easily, in a similar fashion to mainstream banking providers like HSBC and Barclays , as well as fintech upstarts such as Monzo.
watch now VIDEO 5:04 05:04 What leaders are saying about AI at one of Europe's biggest tech shows Squawk Box Europe "We believe that there is more that the consumer can have in the current account space," Janardana said. "We expect that we will launch our current account with the general public sometime next year." Janardana said consumers can expect a "slick" experience from Zopa's current account offering, including the ability to view and manage multiple account bank accounts from one interface and access to competitive savings rates.
IPO 'not top of mind' Zopa is one of many fintech companies that has been viewed as a potential IPO candidate. Around two years ago, the firm said that it was planning to go public, but later decided to put those plans on ice, as high interest rates battered technology stocks and the IPO market froze over in 2022. Janardana said he doesn't envision a public listing as an immediate priority, but noted he sees signs pointing toward a more favorable U.
S. IPO market next year. That should mean that Europe becomes more open to IPOs happening later in 2026, according to Janardana.
He didn't disclose where Zopa would end up going public. "To be honest, it's not the top of mind for me," Janardana told CNBC. "I think we continue to be lucky to have supportive and long-term shareholders who support future growth as well.
" Last year, Zopa made two senior hires , appointing Peter Donlon, ex-chief technology officer at online card retailer Moonpig, as its own CTO. The firm also hired Kate Erb, a chartered accountant from KPMG, as its chief operating officer. The company raised $300 million in a funding round led by Japanese tech investor SoftBank in 2021 and was last valued by investors at $1 billion.
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