Upgrade

Upgrade is an American fintech company that offers credit products, which include payment in parts. From its foundation in 2017 to August 2021, the non-bank issued loans totaling more than $7 billion.

For users of the service, a card with a cashback bitcoins in the Upgrade Bitcoin Rewards Card is available. In addition to credit products, the company offers tools for debt monitoring and financial management.

History

2021

Raising $280 million, estimated at $6 billion

Fintech company Upgrade, Inc. announced on November 16, 2021 the attraction of investments in the series F round in the amount of $280 million with a preliminary valuation of the company at $6 billion.

The round was led by Coatue Management and DST Global. Dragoneer Investment Group and other investors, including Gopher Asset Management, G-Squared, Koch Disruptive Technologies, Old Well Partners, Ribbit Capital, Sands Capital, Ventura Capital and Vy Capital, also took part in the round.

The Yuri Milner Fund invested in the American neo-bank Upgrade in the round for $280 million

We are very pleased to collaborate with DST, Coatue and Dragoneer, "said Reno Laplanche, co-founder and CEO of Upgrade. - This new round will take place just four months after our E-series and demonstrates the rapid growth of Upgrade and the desire to deliver innovative financial products that benefit consumers.

Upgrade, Inc. is a San Francisco, California-based fintech company that was founded in 2017. Upgrade Card allows users to convert credit balances into fixed-rate installments, owners also receive a reward for paying debts.

In early 2021, the Financial Times recognized Upgrade as the fastest growing company in the Americas, and Upgrade Card was recently recognized by the Nilson Report as the fastest growing credit card in America, which was the first time that a fintech company was among the 50 largest US credit card issuers.

Upgrade is an exciting example of a non-bank focused on lending, said Philippe Laffon, founder and CEO of Coatue Management. - Credit is a key component of banking and a major source of income for banks. We are pleased with Upgrade's innovative credit products, which we believe can help the company capture a significant share of the mobile banking market.

Since its launch in 2017, Upgrade has provided customers with loans worth more than $10 billion on cards and loans, in 2021 it is planned to provide another $8 billion. The company also launched the Upgrade Bitcoin Rewards Card, a credit card that pays fees in bitcoins rather than cash, allowing consumers to take advantage of the potential growth potential of bitcoins without putting their money at risk.^[1]

Raising $105 million

In August 2021, Upgrade announced the closure of the Series E funding round, as a result of which the company raised $105 million in investments and was valued at $3.33 billion. Koch Disruptive Technologies (KDT) invested the most in the startup. Funds with Russian roots Winter Capital Partners (the main investor is billionaire Vladimir Potanin) and Black River Ventures also took part in the deal.

Taking into account the investments received in August 2021, the amount of funds raised by the non-bank amounted to $307 million (Crunchbase data). At the end of 2021, Upgrade plans to issue loans of $7 billion.

Winter Capital Partners, associated with Vladimir Potanin, invested in an American neobank valued at $3.33 billion

This year [2021], we registered unprecedented growth and profitability, and additional capital will allow us to continue to make Upgrade Card the main credit card and continue to develop innovative products that will benefit consumers, "said Renault Lapanche, co-founder and CEO of Upgrade.

Koch Disruptive Technologies, commenting on investing in Upgrade, noted that the company sees the rapid development of innovations in the banking sector and believes that fintech and non-banks, in particular, are deeply fundamentally transforming the industry in the interests of consumers.

Winter Capital Partners invests in companies from the health, education, financial and consumer services sectors. The fund's assets by August 2021 exceed $1 billion.^[2]

Notes