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January 5, 2024

Updraft Soars to New Heights with £272 Million Funding Boost

The trailblazing consumer lending fintech hailing from the UK, has just wrapped up a financial fiesta, closing a £272M

In a financial feat signaling confidence in the fintech sector, Updraft, the UK-based consumer lending innovator, has secured a substantial £272 million in a strategic blend of debt and equity funding. This financial milestone, comprising a forward flow arrangement with Jefferies Financial Group and Santander Corporate and Investment Banking, coupled with a Mezzanine and equity investment led by Quilam Capital, MoreThan Capital, LC Nueva AIF, and Auluk Investments, sets the stage for Updraft's ambitious journey ahead. Let's delve into the details of this funding triumph and explore how Updraft is poised to redefine financial support and guidance.

Founded in 2017 by Aseem Munshi, former head of HSBC’s credit card business, Updraft emerged to address the rigidity of the lending market, notorious for sky-high credit card interest rates and banks imposing fees for early repayments. The company's mission is clear: empower customers to achieve 'debt zero' through transparent payoff routes and lower-cost credit options. Updraft leverages open banking to compile customer credit data into a comprehensive report, offering personalized advice and lending options that transform spending and savings habits.

With a keen focus on liberating UK households from the clutches of costly credit cards and overdrafts, Updraft employs a unique blend of bureau data, open banking insights, and behavioral analytics to underwrite credit risks more effectively. This innovative approach has not only significantly lowered the cost of credit for consumers but also positioned Updraft as a trailblazer in reshaping the lending landscape.

The recently secured £272 million funding will propel Updraft into 2024, enhancing its mission to guide customers toward 'debt zero.' The company's strategic roadmap includes the introduction of value-added features, exploration of new channels to reach diverse customer segments, and the consolidation of its position as a leader in financial support and guidance.

Updraft's impressive track record speaks volumes – a user base of 500,000, assisting individuals in paying off over £225 million in credit card and overdraft debts. The company's advanced risk models have outperformed traditional bureau-based credit risk models, positioning it at the forefront of financial innovation.

As Updraft basks in the success of its £272 million funding round, the future appears promising and dynamic. CEO and co-founder Aseem Munshi's enthusiasm echoes the sentiments of an ambitious team ready to transform the financial landscape. This funding not only allows Updraft to serve an expanding customer base but also provides a long window to fine-tune products, processes, and strategies for sustained growth. The collaborative backing from industry heavyweights and investors is a testament to Updraft's innovative approach and the impact it has had on reshaping the financial ecosystem. As Updraft continues its ascent, the financial industry watches with anticipation, witnessing a paradigm shift in consumer lending guided by innovation, transparency, and a commitment to financial empowerment.

Neil Hodgson Coyle
Neil Hodgson-Coyle
Editorial chief at TechNews180
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