Jaydev Janardhana, CEO of UK digital bank Zopa.
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LISBON, PORTUGAL — British online bank Zopa is on track to double its profits and increase its annual revenue by more than a third this year amid huge demand for its banking services, the company's CEO told CNBC.
Zopa recorded revenues of £222 million ($281.7 million) in 2023, and expects its revenues to exceed £300 million this year – representing a 35% annual jump.
The 2024 estimates are based on unaudited internal figures.
The company also says it is on track to double its pre-tax profits in 2024, after reaching £15.8m last year.
Zopa, a regulated bank 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 its credit cards, personal loans and savings accounts through a mobile app – similar to other digital banks like Monzo and Revolut that don't operate physical branches.
“The business is going really well. In 2024, we met or exceeded plans across all metrics,” CEO Jaydev Janardhana told CNBC in an interview on Wednesday.
He said the strong performance was the result of gradually improving sentiment in the UK economy, where Zopa operates exclusively.
Commenting on macroeconomic conditions in Britain, Janardhana said: “Although it has been a tough few years, as far as consumers are concerned, they have continued to feel the pain a little less this year than last.”
The market is “still tight,” he noted, adding that fintech offerings like Zopa's — which typically offer higher savings rates than big banks — become “even more important” during times like these.
“The proposition has become more critical, and even though it is tight for customers, we have had to be more restrictive in terms of who we can lend to,” he said, adding that Zopa has still managed to grow despite this.
Janardana said the biggest priority for the business moving forward is the product. The company is developing a current account product that would allow users to spend and manage their money more easily, in a similar way to major banking providers such as HSBC and Barclaysas well as fintech startups like Monzo.
“We believe there is more for the consumer in the checking account space,” Janardhana said. “We expect to launch our current account with the general public sometime next year.”
Janardana said consumers can expect a “fantastic” experience from Zopa's current account offering, including the ability to view and manage multiple bank accounts from a single interface and access to competitive savings rates.
IPO 'not top of mind'
Zopa is one of several fintech companies seen as a potential IPO candidate. About two years ago, the company said it planned to go public, but later decided to put those plans on hold, as high interest rates hurt tech stocks and the IPO market froze in 2022.
Janardhana said he does not envision a public listing being an immediate priority, but noted that he sees signs pointing toward a more favorable market for U.S. IPOs next year.
This means Europe is becoming more open to IPOs that will occur later in 2026, according to Janardhana. He did not reveal where Zopa will end up going public.
“To be honest, it's not top of mind for me,” Janardhana told CNBC. “I think we continue to be fortunate to have supportive, long-term shareholders who will support future growth as well.”
Last year, Zopa made two senior hires, appointing Peter Donlon, former CTO of online card retailer Moonpig, as its CTO. The company also appointed Kate Erb, a chartered 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 investors last valued it at $1 billion.
