Global Bank Joins Leading Fintech Investors Backing Credit-led Neobank Model
Upgrade, a neobank that offers affordable and responsible credit to mainstream consumers, announced it received a $40 million investment as part of its Series D round led by Santander InnoVentures, the venture capital fund of Santander Group, one of the world’s largest banks.
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Existing investors including Union Square Ventures, Ribbit, Vy Capital and Silicon Valley Bank and new investors Ventura Capital and Uncorrelated Ventures also participated in the round, bringing total funding since inception to $200 million.
Over the last three years since Upgrade launched in 2017, more than 10 million consumers have applied for an Upgrade card or loan. Upgrade has already delivered over $3 billion in credit, growing at a triple digit annual rate.
“We’re excited to support in their next stage of growth,” said Chris Gottschalk, senior advisor at Santander InnoVentures, who will be joining the Upgrade board. “Upgrade is building a neobank with credit at its heart, which we believe is a smart strategy as credit represents 70% of banking revenue globally and is often the main reason customers seek banking services.”
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The investment will fuel the continued growth of Upgrade Card, an innovative credit card that brings the low cost and responsible credit of installment lending to millions of retail locations in the U.S., and the upcoming launch of Upgrade Account, a mobile banking product offering exceptional value to mainstream consumers.
“We are thrilled to welcome Santander InnoVentures as a new shareholder,” said Upgrade co-founder and CEO Renaud Laplanche. “Our strategy of partnering with banks and credit unions of all sizes is delivering tremendous value to our partners and customers, and we are delighted to add one of the world’s largest banks to our partner roster.”
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