UK neolender Updraft secures £272m in mix of debt and equity funding
UK neolender Updraft is ending the year on a high having raised £272 million in a mix of debt and equity funding.
Updraft secures £272m in mix of debt and equity funding
The round comprises a £250 million forward flow arrangement with Santander and Jefferies Financial Group, while Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments led a £22 million mezzanine and equity investment.
Founded in 2017 and based in London, Updraft offers a mobile app featuring lending, credit reporting and financial management services. It combines open banking and behavioural data in an attempt to improve credit risk underwriting and lower the cost of credit.
The start-up’s latest debt and equity round builds on its previous raise last December, when it secured £108 million in debt and equity funding led by NatWest with participation from Hampshire Trust Bank. It had previously looked to NatWest to raise £72 million in equity and debt financing in October 2021.
Writing on LinkedIn, the start-up claims the latest raise “concludes a strong year” that has seen it pass the 500,000 user mark and help users pay off more than £225 million in credit card and overdraft debt.
“The influx of capital sees Updraft reach profitability in 2024 and invest in our platform business,” it says.
