Upgrade raises $40 mn in Series D funding led by Santander InnoVentures,

By Pavithra R

San Francisco based Upgrade, a neobank that offers affordable and responsible credit to consumers has announced that the company has raised $40 million investment as part of its Series D round led by Santander InnoVentures, the venture capital fund of Santander Group, one of the world’s largest banks. The new finance brought the company’s total investment to $200 million.

The investment reiterates Santander InnoVentures’s commitment to innovation and investing in all aspects of the financial services value chain. The funding round saw participation from existing investors including Union Square Ventures, Ribbit, Vy Capital and Silicon Valley Bank and new investors Ventura Capital and Uncorrelated Ventures.

Recently LATAM alternative SME lender a55 received funding from Santander InnoVentures.

“We’re excited to support Upgrade in their next stage of growth. Upgrade is building a neobank with credit at its heart, which we believe is a smart strategy as credit represents 70% of banking revenue globally and is often the main reason customers seek banking services,” said Chris Gottschalk, senior advisor at Santander InnoVentures, who will be joining the Upgrade board.

According to Upgrade, since its inception in 2017, more than 10mn consumers have applied for an Upgrade card or loan. The company has already delivered over $3bn in credit, growing at a triple-digit annual rate.

“We are thrilled to welcome Santander InnoVentures as a new shareholder. Our strategy of partnering with banks and credit unions of all sizes is delivering tremendous value to our partners and customers, and we are delighted to add one of the world’s largest banks to our partner roster,” said Upgrade co-founder and CEO Renaud Laplanche.

Founded in 2017, Upgrade aims to deliver frictionless mobile banking and value to its customers. It offers personal loans and cards, together with credit monitoring and education tools, helping consumers to have greater control over their money. The Upgrade Card is issued by Sutton Bank, Member FDIC, under license from Visa U.S.A.