Fintech Updraft closes a £272 million debt and equity round

Today Updraft, a UK-based consumer lending fintech company, has announced the closing of a £272 million debt and equity round.

Updraft provides loan refinancing solutions, enabling its members to understand their financial profile, forge positive habits with their money, and make changes that pay off in the long term.

Combining smart algorithms, Open Banking and credit reference data, Updraft helps build a full picture of a user's financial profile. It then serves bespoke recommendations to establish practical, beneficial habits and deliver routes to pay off borrowings in the most effective possible way. 

Updraft has built a customer base of over 500,000 users and has successfully empowered individuals to take back control of their finances, by paying off more than £225 million in credit cards and overdraft debt.

The forward flow arrangement with Jefferies and Santander Corporate and Investment Banking, allowing the business to build on its mission to help UK households move away from expensive credit cards and overdrafts.

Updraft also announced a further £22M million Mezz and equity investment. Mezz capital is debt capital and ranks higher than equity. This will complete the buildout of a £200 million balance sheet facility and fuel growth in 2024 led by Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments.

Updraft's growth plans will see more value-added features to turn users from borrowers to savers, and test new channels to reach new customer segments while staying on course to be the leader in financial support and guidance. 

Updraft CEO, Aseem Munshi, reacted to the closing of the deal, saying:

"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. This is another key milestone delivered by the amazing Team Updraft." 

MD, Head of ABS Originations at Jefferies, Pradeep Krishnamurthy added:

"Our review of Updraft's processes and underwriting gives us confidence in their ability to originate and manage a high-performing loan book."

Updraft was advised by Alantra on the design and execution of the forward flow arrangement. Co-CEO of FIG at Alantra, Andrew Jenke said:

“We are immensely pleased to have advised Updraft on the execution of this important transaction.”

Lead image: Updraft. Photo: uncredited.