Zopa, the UK-based peer-to-peer money lender, is working with JPMorgan Chase & Co. to raise £70 million ($106 million) in a financing round that could value the company at more than £500 million (just south of $760 million) once completed, Sky News reported today.
Founded over a decade ago, the London-based fintech company is currently backed by Benchmark Capital, Wellington Partners, Bessemer Venture Partners, Augmentum Capital and Arrowgrass Capital.
A Sky News source says new investors may be interested in acquiring equity in the company, alongside several of the aforementioned existing investors.
Zopa's revenues doubled last year to more than £11.5 million as more savers and borrowers used its P2 lending platform, but its losses also doubled. To date, the fast-growing company has now lent more than £1.2 billion in total (with almost half of that borrowed this year alone).
Rival Funding Circle, backed by the likes of Index Ventures, Accel Partners and DST, is close to breaking the £1 billion-in-loans barrier before the end of the year.