Updraft raises £272m debt and equity round

Blog | January 12, 2024

Consumer lender Updraft has continued its tradition of Christmas fundraising with news that it has closed a £272m debt and equity funding round.

The funding is comprised of a £250m forward flow arrangement with Jefferies and Santander, plus a £22m mezzanine and equity portion led by Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments.

Updraft says this combined raise will let it build on the momentum of 2023 into next year, having grown to now over 500,000 users who have collectively borrowed to pay off more than £225m in credit card and overdraft debt.

“This agreement helps us serve even more customers to manage their finances,” Updraft CEO, Aseem Munshi said.

“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” 

While Updraft didn’t say that the round constituted its Series B, the company last December raised an £108m debt and equity round of which the £8m equity part was labelled as its Series A.

Updraft was founded in 2017 by finance veteran Aseem Munshi, who worked at HSBC for over 14 years in a variety of roles, including most recently as head of unsecured lending.

The fintech uses open banking and credit report data to create a comprehensive view of a customer’s spending and borrowing, with recommendations and lending to help consumers to pay down high-interest debt.

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