Abound, a UK FinTech that uses open banking and AI to provide better loan deals to consumers, has scored £500m in a mixture of debt and equity finance.
The debt financing came from Citi and clients of Waterfall Asset Management. Equity investors included K3 Ventures, GSR Ventures, and Hambro Perks. Following this round, Abound has raised a total of close to £570m.
Founded in 2020, Abound provides borrowers with better interest rates by taking a look at their full financial picture, rather than just relying on a credit score.
Finextra noted that Abound is currently able to offer loans between £1,000 and £10,000 repayable for up five years with a 24.8% APR. The company is the consumer arm of Fintern.
Abound claims it has been growing 30% month-on-month and served over 150,000 customers through its service.
Aiming to have £1 billion on its balance sheet by 2025, Abound said the debt and equity will be used to increase its headcount and to further develop its business-to-business offer, allowing other banks and lenders to take advantage of its technology.
Abound CEO and co-founder Gerald Chappell said, “This latest investment, which comes from a mixture of tech multinationals to global banks, is a testament to the demand and success of our service, particularly in this current challenging economic landscape.”
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