Online credit platform Upgrade has bagged $62m in its Series C funding round which was led by CreditEase Fintech Investment Fund.
All of Upgrade’s existing ‘major’ backers took part in the new series, these firms include Apoletto, FirstMark Capital, NOAH, Ribbit, Sands Capital Ventures, Silicon Valley Bank, Union Square Ventures and Vy Capital.
The round included the conversion of all previously issued convertible notes.
San Francisco-headquartered Upgrade is an online credit platform which offers loans between $1,000 and $50,000. Borrowers can take financing out to pay off credit card, debt consolidation, business loan, home improvement, and large purchases, among other needs. Repayment terms are over 36 or 60 months; however, the rate does not increase.
The company also offers credit monitoring and education tools to aid a borrower’s credit understanding and optimise their loan.
This batch of capital comes hot off the heels of Upgrade’s launch of its personal credit line product.
The new offering provides a low cost, fixed rate and monthly amortisation of personal loans which has a similar flexibility to that associated with credit cards. Its monthly balance turns into an instalment loan with the goal of teaching the borrower the discipline of paying down the principal each month, rather than over years.
Capital from the round will be used to further product innovation and its credit analytics technology. Proceeds will also be put towards the company’s risk management and compliance efforts, and the expansion of its San Francisco, Phoenix, Montreal and Chicago offices.
CreditEase managing director Anju Patwardhan said, “We are very proud to be leading this round. We believe Upgrade will grow into a mainstream consumer credit brand that is dedicated to helping consumers better understand their credit and encourages responsible credit behavior and we are excited to be part of the journey.”
As part of the deal, Patwardhan will join Upgrade’S board of directors.
Following the new line of equity, Upgrade has raised a total of $142m in funding since its launch in 2016.
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