London FinTech Updraft raises £108m in Series A led by NatWest
By Gloria Methri
Financial habit-forming platform Updraft has raised £108 million in equity and debt to power its growth strategy and deliver savings to its user base of 300,000 members.
The funding round of £100 million was led by NatWest, with Hampshire Trust Bank also joining to create a £160 million senior debt facility for the business. LC Nueva and Auluk Investment led equity funding of £8 million. David Callard, Majlis Investments, and Faber Capital were among other prominent investors.
Updraft combines smart algorithms, open banking, and credit reference data to build a person’s financial profile. It then gives recommendations to establish practical and beneficial finance habits and effective routes to pay off borrowings. This latest raise will support the business in the growth of its team, as well as investment in new features and products.
The FinTech has already planned to open its Series B soon with an ambition to build a £1 billion business over the next five years. The company remains focused on its mission to increase the customer case in the UK and to expand into new markets.
Aseem Munshi, CEO and Founder of Updraft said, “We are thrilled to close this latest round of funding, where our debt and equity partners have demonstrated their belief in Updraft’s team and our mission, particularly in the current macroeconomic environment. It is a testament to what Updraft is trying to do; provide real solutions to customers to help them find their financial freedom. We have big ambitions planned for 2023, and this recent fundraiser puts us in a great position to help even more people.”
Rob Lamont, Director, Financial Institutions, NatWest, added, “As a leading bank for financial capability, NatWest is pleased to be supporting a business that improves financial outcomes for consumers in the UK, and Updraft does just this. Supplementing succinct user and lending growth strategies with the use of best-in-class risk models that outperform bureau-based credit risk models, we are confident with Updraft’s growth momentum. They are, thus far, on track against all key measures where growth in new users, new lending, balance sheet, revenue, write-offs, and overall net margin are all to plan.”
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