Credit Company Raises $280 Million at $6 Billion Valuation

Upgrade Secures $280 Million in Series F Funding

Fintech firm Upgrade has successfully completed a Series F funding round, occurring a mere four months following the closure of its prior financing. The company revealed today that it has secured $280 million in new investment, establishing a pre-money valuation of $6 billion.

Rapid Valuation Growth

In August, Upgrade announced its Series E round, totaling $105 million at a valuation of $3.325 billion. This indicates substantial financial strength and a significant increase in the company’s valuation within a short timeframe.

Investment Details

Coatue Management and DST Global spearheaded today’s Series F round. Dragoneer Investment Group also contributed, alongside existing investors including Gopher Asset Management, G Squared, Koch Disruptive Technologies, Old Well Partners, Ribbit Capital, Sands Capital, Ventura Capital, and Vy Capital.

Focus on Responsible Credit

Upgrade concentrates on providing responsible credit solutions for consumers across the United States. The company’s offerings include several credit cards designed to incentivize timely balance payments, rewarding users for consistent on-time payments.

Credit Card Rewards Programs

Upgrade’s Cash Rewards card provides 1.5% cash back on all transactions. Additionally, a separate card allows users to earn 1.5% back in bitcoin, catering to cryptocurrency enthusiasts.

Debt Management Solutions

For those facing credit card debt, Upgrade offers a solution by consolidating monthly charges into manageable installment plans. These plans allow for repayment over a period of 24 to 60 months, featuring fixed rates and consistent monthly installments.

Banking Alternatives

The company has expanded its services to include checking accounts and debit cards, presenting an alternative to traditional banking institutions. These accounts are characterized by the absence of monthly fees and minimum balance requirements, coupled with rewards on debit card purchases.

Personal Loan Options

Upgrade also facilitates access to personal loans, with Annual Percentage Rates (APRs) ranging from 5.94% to 35.97%, providing further financial flexibility to consumers.

Significant Credit Delivery

To date, Upgrade has extended $10 billion in credit to consumers through its credit cards and personal loans. The company anticipates accelerating this growth, projecting $8 billion in credit delivery throughout 2021 alone.