Credit-focused fintech firm, Upgrade saw a sharp increase in its valuation recently after the company received approximately $280 million in funding. The Series F round valued Upgrade at $6 billion.
The $280 million funding round was led by Coatue Management and DST Global. According to the details shared by Upgrade, the company delivered nearly $10 billion in affordable credit to consumers through cards and loans since 2017.
In terms of overall funding, Upgrade has received a total of $600 million in equity capital since its inception. Upgrade aims to expand its operations through the recent funding.
“We are thrilled to partner with DST, Coatue and Dragoneer,” said Renaud Laplanche, the Co-Founder and CEO of Upgrade. “This new round comes just four months after our Series E and demonstrates Upgrade’s rapid growth and commitment to delivering innovative financial products that benefit consumers.”
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Earlier this year, the fintech platform launched a Rewards Checking account to offer cash backs. In addition, the company introduced the Bitcoin Rewards Card, a credit card that pays rewards in bitcoin rather than cash, allowing consumers to enjoy the potential upside of bitcoin without putting their own money at risk upfront.
Global fintech funding has jumped substantially in 2021 amid the acceptance of digital payments. One of the most important parts of the recent boom is credit & mobile banking. Upgrade outlined the popularity of credit banking and mentioned that the Upgrade Card promotes responsible credit by turning every balance into a fixed-rate installment plan, and by paying rewards to cardholders as they pay down their balance.
“Upgrade is an exciting example of a credit-led neobank,” said Philippe Laffont, Founder, and CEO of Coatue Management. “Credit is a key component of banking and has been a major source of revenue for banks. We are excited by Upgrade’s innovative credit products that we believe can help the company capture a significant share of the mobile banking market”.