Company Overview

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Founded:
March, 2005
Founders:
Giles Andrews
Headquarters:
London
Funding:
$56.6M
Categories:
Finance
Description:
Zopa offers peer-to-peer loans with low rates, flexible terms, and no early repayment fees.

Detailed Description

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Zopa is a P2P money lending service that allows lenders and borrowers to deal directly with one another, cutting out the banks who act as middlemen.

Zopa works in the following way: the company first categorizes borrower credit grades with an A*, A, B, C or Y rating; then lenders make offers that vary by money amount and time period for persons with a certain credit grade; and borrowers can then agree the aggregate offered rate.

Zopa takes on such responsibilities as distributing money between parties, completing the legal paperwork, performing borrower identity/credit checks, and employing a collections agency that chases missed payments for the lender.

Zopa also mitigates risk for lenders by enforcing monthly direct debit repayment, making borrowers sign a legal contract, and allowing lenders to lend small chunks of money to individual borrowers (i.e. someone lending £1000 would have their money spread across say 100 borrowers).

The company itself makes money by charging a fixed fee for borrowers and 1% annual fee for lenders.

Zopa has received public acclaim as well, having been awarded CNET Technology Awards' 2006 Internet Innovation of the Year, the 2007 Webby Award for Best Banking/Bill-Paying Website, the 2008 Webby Award for Financial Services, the Banker 2007 Award for Best Internet Project and Moneywise 2009 Awards for Best Customer Service and Best Personal Loan.

One of the three initial members of the UK's Peer-to-Peer Finance Association, together with FundingCircle and RateSetter. Other P2P lending services include Lending Club, Prosper, and Kiva.

Current Team (1)

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Past Team (3)

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Funding Rounds (6) - $56.6M

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Board Members and Advisors (3)

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Products (1)

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  • Vv0jvzselhyynfwpbcej

    Zopa

    Zopa was added to CrunchBase in 2007

Investors (7)

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    Arrowgrass Capital

    Euro-focused focused alt. asset manager
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    Augmentum Capital

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    Benchmark

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    Bessemer Venture Partners

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    Wellington Partners

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    Draper Associates

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  • 98b1c3a0c5a7aa15464f63a6de527fab

    Balderton Capital

    One of Europe's largest early-stage VCs

Offices/Locations (1)

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  • Office

    40-44 Newman Street

    London, W1T 1QD

    GBR

Competitors (9)

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    Lending Works

    Lending Works is a peer-to-peer (P2P) lender that matches underwritten personal loan borrowers...
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    RateSetter

    RateSetter is a P2P lending website allowing users to lend and borrow money directly with each...
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    FundingKnight

    Peer-to-Peer money lending service
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    CapAlly is an online peer-to-peer student loan marketplace that links students to financial...
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    PPDai is a China-based peer-to-peer social lending site.
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    Academic Capital Exchange (ACE), a peer-to-peer student loan marketplace, helps students obtain...
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    Qifang is a Chinese peer-to-peer lending online community focused on student loans.
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