Abound, a UK-based lendtech, has raised £500m in funding to supercharge its growth.
The new funding will be used to expand the number of customers it lends to, grow its headcount and develop its B2B offering.
The new funding round compromises both debt and equity financing. Debt financing came from Citi, and clients of Waterfall Asset Management.
Equity investors include K3 Ventures, GSR Ventures and Hambro Perks, which led the previous equity round for Abound.
This latest investment brings the total raised to date by Abound to £570m. Founded in 2020 by two credit experts, the lendtech said it is on track to have £1b on its balance sheet by 2025.
Abound claim to offer borrowers better interest rates by looking at their complete financial picture, through open banking and artificial intelligence, rather than just a credit score.
Gerald Chappell, chief executive officer and co-founder of Abound, commented: “Our approach to lending remains unique in the finance industry and this latest investment is a testament to the demand and success of our service.”
Krishin Uttamchandani, director at Waterfall Asset Management, said: “Waterfall is pleased to be part of Abound’s business expansion as it seeks to utilise open banking in a more informed way to help the consumer.
“Abound is led by a strong management team that we are excited to work with, supported by, what we believe is, a robust tech stack, underwriting methodology and view on risk.”