London-based fintech Updraft has successfully closed a substantial £272 million joint debt and equity round, signaling a new era for the company’s ambitious plans to revolutionize consumer lending and financial planning services.
The infusion of capital comes from a £250 million agreement with Jeffries and Santander Corporate and Investment Banking, along with an additional £22 million raised in a mezzanine and equity investment from Quilam Capital, MoreThan Capital, LC Nueva AIF, and Auluk Investments.
Founded in 2017, Updraft has been dedicated to reshaping the financial landscape by providing lower-cost credit options and innovative tools designed to enhance spending and savings habits. Central to its approach is the utilization of open banking, a technology that allows the company to compile customer credit data into comprehensive reports, offering personalized advice and tailored lending options.
Empowering Financial Freedom
Updraft’s commitment to financial inclusion is evident in its mission to empower consumers with accessible credit solutions. Through the strategic partnership with Jeffries and Santander Corporate and Investment Banking, the fintech firm aims to bolster its lending capabilities, ensuring a wider reach to individuals seeking responsible and cost-effective financial support.
CEO Aseem Munshi expressed his enthusiasm about the transformative potential of the agreement, stating, “This deal helps us serve even more customers to manage their finances. The size and term of the deal give 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.”
Diversified Investment Backing
In addition to the substantial debt arrangement, Updraft secured £22 million in a mezzanine and equity investment from a consortium of reputable backers, including Quilam Capital, MoreThan Capital, LC Nueva AIF, and Auluk Investments. This diversified funding approach underscores the confidence these investors have in Updraft’s vision and its potential to reshape the financial services landscape.
Steady Momentum
The latest funding round follows Updraft’s successful £108 million raise in December 2022, which included £8 million in equity investment. The debt portion of that round was provided by NatWest and Hampshire Trust Bank. In 2021, Updraft had previously raised £72 million, showcasing the steady momentum and growing confidence in the company’s mission.
Looking Ahead
With this monumental funding injection, Updraft is poised for accelerated growth and innovation. The company plans to channel these funds into further refining its products, enhancing operational processes, and strategically positioning itself for sustained expansion. The long-term focus on risk management and profitability is indicative of Updraft’s commitment to building a resilient and impactful business.
As Updraft continues to navigate the dynamic landscape of fintech, the recent funding round stands as a testament to the confidence investors have in the company’s ability to drive positive change in consumer lending and financial planning. The journey ahead promises exciting developments as Updraft forges ahead with its mission to democratize access to financial services and foster a culture of responsible financial management.