Upgrade, a consumer credit platform, has raised $62m in its Series C round of financing led by CreditEase Fintech Investment Fund.
Image: Upgrade closes $62m Series C round. Photo: courtesy of rawpixel / Unsplash.
The new financing will fuel Upgrade’s continued product innovation on the heels of the recent launch of its Personal Credit Line and the expansion of Credit Health, Upgrade’s credit monitoring and education product.
Upgrade co-founder and CEO Renaud Laplanche said: “The new capital will enable continued investments in product, credit analytics, compliance, risk management and expansion of our San Francisco, Phoenix, Montreal and Chicago offices.
“We are seeing a growing desire from consumers to better understand their overall credit situation and to learn to make great financial decisions that give them access to more affordable credit. This encourages us to keep building responsible consumer credit products that fit these trends.”
Upgrade’s recently launched Personal Credit Line is designed to combine the low cost, fixed rate and monthly amortization of personal loans with the flexibility and utility of lines of credit typically obtained through credit cards.
The monthly balance turns into an installment loan that teaches customers the discipline of paying down the principal every month over two, three or five years. The Upgrade platform has facilitated over $1 billion in originations of affordable consumer loans since inception.
CreditEase managing director Anju Patwardhan said: “We are very proud to be leading this round. We believe Upgrade will grow into a mainstream consumer credit brand that is dedicated to helping consumers better understand their credit and encourages responsible credit behavior and we are excited to be part of the journey.”
Upgrade has raised $142 million in equity capital since inception in 2016. This $62 million Series C round includes the conversion of all previously issued convertible notes. All major existing investors including Apoletto, FirstMark Capital, NOAH, Ribbit, Sands Capital Ventures, Silicon Valley Bank, Union Square Ventures and Vy Capital participated in the Series C round.
Source: Company Press Release