A London scaleup aiming to connect users with fairer loans at lower costs has raised £272 million of debt and equity funding.
Updraft combines smart algorithms, open banking and credit reference data to offer bespoke personal loans to its customers. It also enables them to understand their financial profile, forge positive habits with their money and make changes that pay off in the long term.
It has built a customer base of over 500,000 users which it says have collectively paid off more than £225m of credit card and overdraft debt.
Updraft, which raised £8m equity funding and £100m debt before Christmas 2022, has now revealed a £250m forward flow arrangement with Jefferies and Santander.
It also announced a further £22m in mezzanine and equity investment – led by Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments – to complete the buildout of a £200m balance sheet facility and fuel growth in 2024.
It aims to turn its users from borrowers into savers.
“This agreement helps us serve even more customers to manage their finances,” said CEO Aseem Munshi.
“The size and term of the deal gives us a long window to focus on building our products, processes and strategy for future growth while we continue to manage risks and build a profitable business. This is another key milestone delivered by the amazing Team Updraft.”
Pradeep Krishnamurthy, MD, head of ABS originations at Jefferies, added: “Our review of Updraft’s processes and underwriting gives us confidence in their ability to originate and manage a high-performing loan book.”