Updraft secures £272m windfall

UK-based fintech Updraft has secured a significant £272 million investment in its latest funding round. 

UK-based fintech Updraft has secured a significant £272 million investment in its latest funding round. 

In a press release, the consumer lending specialist noted that the funding will allow the business “to build on its mission to help UK households move away from expensive credit cards and overdrafts.” 

Central to this funding is a £250 million forward flow arrangement with Jefferies Financial Group and Santander Corporate and Investment Banking.  

In addition to the forward flow arrangement, Updraft has secured an additional £22 million in mezzanine and equity investments. This capital injection will play a pivotal role in completing the buildout of a £200 million balance sheet facility, further fuelling the company’s growth in 2024. Key contributors to this round include Quilam Capital, MoreThan Capital, LC Nueva AIF, and Auluk Investments. 

The fintech is going from strength to strength. Back in December 2022, Fintech Intel’s Joshua Poyser reported on Updraft’s previous successful series A funding round. The company secured £108 million in debt and equity. 

Armed with best-in-class risk models that outperform traditional credit risk models, Updraft has experienced another robust year, reaching a user base of 500,000 individuals. The fintech has empowered users to regain control of their finances, facilitating the repayment of over £225 million in credit cards and overdraft debt. 

This funding injection not only strengthens Updraft’s financial position, but also means the company can look to add value for its users: the fintech plans to launch new features and reach new customer segments. 

Aseem Munshi, CEO of Updraft, expressed enthusiasm about the agreement, stating, ““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.” 

Pradeep Krishnamurthy, MD and head of ABS originations at Jefferies, added, ““Our review of Updraft’s processes and underwriting gives us confidence in their ability to originate and manage a high performing loan book.” 

Quilam Capital led the mezzanine capital increase to support on-balance sheet capacity. This was complemented by an equity capital round led by MoreThan Capital and LC Nueva AIF, ensuring Updraft’s path to profitability in 2024 and continued investment in its platform business. 

Image: Updraft 

Josie Miller Josie Miller is an editor at FinTech Intel.