The digital bank could raise additional funds for acquisitions. Photo by Luis Villasmil on Unsplash.

UK digital bank Zopa is looking to acquire part of its rival fintech DivideBuy days after raising £75m in funding, reported SkyNews. 

According to the publication, the digital bank is examining a bid for certain assets of the buy now pay later fintech, which is backed by the US-based investor Davidson Kempner Capital Management. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The terms and status of the deal were not clear and it is possible that a deal may not materialise, said the publication. 

In September 2021, DivideBuy reached an agreement with Davidson Kempner for a minority equity investment and a credit facility for £300m.

The news comes after Zopa raised £75m to drive the next phase of its growth. 

Responding to the development, a Zopa Bank representative said: “Acquisitions form part of the growth journey of most technology firms looking to scale, and feature in the regular menu of options that support accelerated growth.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“While we do not have something official to announce just yet, Zopa is well positioned to explore M&A as it has always focused on strong unit economics and monetisation.

“Additionally, with a banking licence and a multi-product eco-system, it has diversity of revenue and funding, as well as strong products that have high growth rates.”

IAG Silverstripe led Zopa’s latest round, which was joined by venture capitalist Augmentum and Davidson Kempner, a hedge fund based in the US.

Speaking to Reuters, Zopa CEO Jaidev Janardana had said the digital bank could raise more cash or offer its shares to help fund larger deals.