Updraft , a UK-based financial app, has raised GBP 108 million in equity and debt to power its growth strategy and deliver savings to its user base. The senior debt funding round of GBP 100 million was led by NatWest, with Hampshire Trust Bank also joining to create a GBP 160 million senior debt facility for the business.

LC Nueva and Auluk Investment led equity funding of GBP 8 million. Several other prominent investors in this round included David Callard, Majlis Investments, and Faber Capital. This latest raise will support the business in the growth of its team and customer base, as well as investment into new features and products.

With Updraft Credit lending already at GBP 120 million, the business has just launched a phased rollout of its latest initiative to help members; Updraft Payce – a reusable limit to turn credit card purchases into cheaper, faster, flexible payoff plans. Updraft combines smart algorithms, Open Banking, and credit reference data to build a complete picture of a person’s financial profile. It then gives bespoke recommendations to establish practical and beneficial finance habits and effective routes to pay off borrowings.

The funding rounds The fintech has already set its sights on its next funding round as it plans to open its Series B soon. With the newly available debt capital and an ambition to build a GBP 1 billion business over the next five years, the company remains focused on its mission to help more people in the UK and to expand into new markets. In October 2021, Updraft has raised GBP 72 million in equity and debt, to fuel its expansion and help more UK consumers on a bespoke path to financial freedom.

The funding round was led by NatWest, who provided Updraft’s inaugural senior debt facility, with the fintech also extending its existing debt facility with specialist investment firm, Quilam Capital. This builds on an initial GBP 16 million raise that was announced in late 2020. The capital helped Updraft in its mission to reduce high-interest borrowings for UK consumers by helping its members avoid sticky credit card debt and the ever rising Buy Now, Pay Later (BNPL) burden.

How Updraft works To determine the true cost of payments and to have overall visibility on a user’s patterns, Updraft builds a picture of the consumer using their credit reference data, which combines information from multiple bank accounts, and the real time data Open Banking provides on cost and credit card interest. Updraft then advises users on how to pay off debt faster by increasing their minimum monthly requirement, for example, and how to improve on their credit scores by keeping their debt at an acceptable credit utilisation rate. Consumers can also set goals for themselves to which Updraft will recommend a series of actions to meet them.

The app provides consumers with a tailored payoff plan that helps them to cut down interest rates and lower the cost of their credit, while advising users on which bills to pay first to reach their goals faster. Updraft was aiming to lend GBP 200 million to UK consumers in 2022, refinancing portions of users’ credit card debt that can reduce the interest rate and the duration of the debt repayment. .