Zopa has raised £20m from its existing investors, in what it said was a “significant vote of confidence” after it launched its digital bank last June.
Zopa said it had already become one of the top 10 credit card issuers in the UK in terms of new customers since the launch, and attracted £250m in deposits.
It said there was huge demand for its products, as more Brits turned to credit to allow them to “carry out home renovations, buy cars and revive postponed wedding plans” during the pandemic.
Across its business, the company has lent more than £5bn to customers in the UK in unsecured loans, car finance products and credit cards.
Late last year, chief executive Jaidev Janardana told the Telegraph the plan was for the digital bank to be profitable by the end of 2021.
“I expect that by next December we should be profitable, not operating profit, actual P&L, which would be quicker than any other bank.”
Rival challenger banks Revolut and Starling had both reached breakeven at the end of last year, whilst Monzo had said it was hoping to become profitable in 2021.