UK-based fintech company that offers affordable credit through a subscription model, Creditspring, has raised £48 million to support more members. The latest fundraising round brings the company’s total amount raised since launching in 2016 to £70 million.
The company’s latest Financial Stability Tracker shows that one in six (16%) adults in the U.K. will need to borrow in the coming months. Over the course of 2022, it plans to lend £100 million to support its members through its fixed-cost subscription loan services. This compares to a total of £25 million lent in 2021.
The startup’s subscription model is a fixed-cost, low-risk credit solution to offer customers access to two advances per year, with clear repayments, capped costs, and no hidden charges.
Creditspring co-founder and CEO Neil Kadagathur said: “As people increasingly turn to borrowing to survive the cost-of-living crisis, it creates a perfect hunting ground for predatory lenders who do not have the best interests of their customers at heart. We must do all we can to help people reduce their chances of falling into unmanageable debt - never has this been more important than it is today.”
According to the company, its members have increased by 50 per cent since the start of the year, from 100,000 to 150,000, and it expects to add an additional 200,000 members by the end of the year. The subscription model allows customers access to two advances a year with fixed fees to access credit.
“Creditspring is proving to be a major disruptor in the lending sector, providing a much-needed alternative to high-cost, short term loans,” Monomyth Group founder, CEO and lead investor Chip Dunn said.