London-based fintech company Zopa, an online lender, has raised £32 million. The investment came from the Indian financial services group Wadhawan Global Capital and Northzone. This brings the total raised by the startup to £80 million.
Zopa invented the concept of peer-to-peer lending in 2005, with investors lending money directly to customers looking to borrow. Over £2 billion has so far been lent through the platform.
Zopa plans to launch its own retail bank with the new funding, to operate alongside its peer-to-peer lending services. However this may not happen immediately, as approval for a banking licence can take up to two years.
"This investment gives us additional resources to continue our growth, support the launch of our next generation bank, and bring our award-winning products to even more people in the UK," CEO Jaidev Janardana said in a statement.
"We believe Zopa is a blueprint of what the modern, technology-first bank will, and should look like, based on transparency and customer service," added Jeppe Zink, a partner at Northzone. "Zopa is already a trailblazer in the market, and is in a strong position to build on this, with the launch of their new products."
Read more: Business Insider