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AI lending platform Abound lands £500m in debt and equity funding

Abound
Image credit: Abound

London-headquartered fintech Abound has scooped £500m in a combination of debt and equity financing for its AI-powered lending platform.

Using open banking technology and AI, Abound says it gets a “holistic” view of a person’s finances such as income, expenses and earnings to determine the borrowing rate for its loans.

“Our approach to lending remains unique in the finance industry and this latest investment, which comes from a mixture of tech multinationals to global banks, is a testament to the demand and success of our service, particularly in this current challenging economic landscape.,” said Gerald Chappell, CEO and co-founder of Abound.

Previously called Fintern, Abound’s capital boost includes debt financing from American bank Citi and Waterfall Asset Management. K3 Ventures, GSR Ventures and Hambro Perks provided capital as equity investors.

When asked by UKTN, Abound declined to disclose the equity and debt breakdown. The loan company’s total funding now stands at £570m.

Tom Bradley, partner, Hambro Perks, said: “The team has proven to us their capability by delivering consistent growth since we first invested and successfully launching their B2B solution for lenders. ”

Abound says that it has provided loans for more than 150,000 users and claims it will have £1bn on its balance sheet by 2025. Other loan firms using AI include Lendable.

Abound will spend the debt and equity raised on hiring and building out its B2B offering, which allows third-party lenders or banks to use its loan technology.

“The lending industry is dominated by old practices, like traditional credit scoring, which ignore technological developments of the last decade. Abound is delivering a unique product and a differentiated approach which is already proving itself to work for thousands of customers,” Kuok Meng Xiong, CEO of K3 Ventures.

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