A London-based scaleup, Updraft, has raised £272 million in debt and equity funding. Updraft’s aim is to provide customers with bespoke personal loans at lower costs through the use of smart algorithms, open banking and credit reference data. In addition to this, Updraft helps customers understand their financial profile, develop positive habits with money, and make long-term changes. It has already established a customer base of over 500,000 users who have collectively paid off more than £225m of credit card and overdraft debt.
Updraft secured £8m equity funding and £100m debt before Christmas 2022. Recently, it has secured a £250m forward flow arrangement with Jefferies and Santander and an additional £22m in mezzanine and equity investment from Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments. Updraft plans to use this funding to complete the buildout of a £200m balance sheet facility and drive growth in 2024.
Updraft’s goal is to convert borrowers into savers. CEO Aseem Munshi said, “This agreement helps us serve even more customers to manage their finances.” The deal’s size and term provide Updraft with a long window to concentrate on building its products, processes and strategy for future growth while managing risks and building a profitable business.
Jefferies’ MD, head of ABS originations Pradeep Krishnamurthy, commented, “Our review of Updraft’s processes and underwriting gives us confidence in their ability to originate and manage a high-performing loan book.”
Overall, Updraft’s success can be attributed to integrating technology and finance for the benefit of its customers. As a result, it has secured a place in The 150 game-changing tech deals of 2023.
