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Open banking loan provider Updraft raises £108m

Updraft open banking

Updraft, an open banking-powered app designed to form positive financial habits, has secured £108m in a joint equity and debt funding round.

According to the company founder and CEO, Aseem Munshi, Updraft is trying to “provide real solutions to customers to help them find their financial freedom”.

Updraft provides what it describes as fair loans at a lower cost to users’ credit. The app also provides information to help improve customers’ financial habits. Updraft uses open banking to connect to customers’ banks to approve loan applications.

“We have big ambitions planned for 2023, and this recent fundraiser puts us in a great position to help even more people,” said Munshi.

The Series A round came in the form of a £100m debt investment led by NatWest and Hampshire Trust Bank as well as an £8m equity investment from LC Nueva, Auluk Investments, and Faber Capital.

“As a leading bank for financial capability, NatWest is pleased to be supporting a business that improves financial outcomes for consumers in the UK, and Updraft does just this,” said Rob Lamont, director of financial institutions at NatWest.

“Supplementing succinct user and lending growth strategies with the use of best-in-class risk models that outperform bureau-based credit risk models, we are confident with Updraft’s growth momentum.

“They are, thus far, on track against all key measures where growth in new users, new lending, balance sheet, revenue, write-offs, and overall net margin are all to plan.”

The London-based fintech previously raised £72m in a funding round in October 2021.