UK’s Updraft raises £272m to transform credit management for households

UK's Updraft raises £272m to transform credit management for households

Updraft, a prominent UK-based consumer lending FinTech, has raised a substantial £272m.

The financing comprises a £250m forward flow arrangement with Jefferies Financial Group and Santander Corporate and Investment Banking, along with senior financing from Santander CIB. Additionally, the company raised a further £22m in Mezzanine and equity investment led by Quilam Capital, MoreThan Capital, LC Nueva AIF, and Auluk Investments.

Updraft’s primary focus is to aid UK households in moving away from costly credit cards and overdrafts. The company achieves this through a unique blend of bureau data, open banking data, and behavioural analytics to underwrite credit risks more effectively. This innovative approach has significantly lowered the cost of credit for consumers.

The funds raised will be used to continue Updraft’s mission into 2024, focusing on helping customers achieve ‘debt zero’ with clear payoff routes. The company plans to add more value-added features, explore new channels for reaching different customer segments, and cement its position as a leader in financial support and guidance.

The company has had a strong year, growing its user base to 500,000 and assisting individuals in paying off over £225m in credit card and overdraft debts. Updraft’s advanced risk models have outperformed traditional bureau-based credit risk models.

Updraft CEO, Aseem Munshi, expressed his enthusiasm for the deal. They said, “This agreement helps us serve even more customers to manage their finances. 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, also commented on the deal: “Our review of Updraft’s processes and underwriting gives us confidence in their ability to originate and manage a high performing loan book.”

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