London FinTech Updraft raises £108m in Series A led by NatWest

By Gloria Methri

Financial addiction platform Updraft has raised £108m in equity and debt to drive its growth strategy and deliver savings to its 300,000 member user base.

The £100m funding round was led by NatWest, with Hampshire Trust Bank also joining to set up a £160m senior debt facility for the business. LC Nueva and Auluk Investment led the £8 million equity financing. David Callard, Majlis Investments and Faber Capital were among other prominent investors.

Updraft combines smart algorithms, open banking and credit reference data to build a person’s financial profile. It then provides recommendations for establishing practical and beneficial financial habits and efficient ways to pay off loans. This latest increase will support the business in growing its team, as well as investing in new features and products.

The FinTech has already planned to open Series B soon with an ambition to build a £1bn business over the next five years. The company remains focused on its mission to grow its customer base in the UK and expand into new markets.

Aseem Munshi, CEO and Founder of Updraft said, “We are thrilled to close this latest round of funding, where our debt and equity partners have shown their faith in Updraft’s team and our mission, especially in the current macroeconomic environment. It is a testament to what Updraft is trying to do; offer real solutions to customers to help them find their financial freedom. We have big ambitions planned for 2023 and this recent fundraising puts us in a good position to help even more people.”

Rob Lamont, Director, Financial Institutions, NatWest, added, “As a leading bank for financial capability, NatWest is delighted to support a business that improves financial outcomes for UK consumers, and Updraft is doing just that. By supplementing concise user and loan growth strategies with the use of best-in-class risk models that outperform agency-based credit risk models, we are confident in Updraft’s growth momentum. They are so far on their way towards all key initiatives where growth in new users, new lending, balance sheet, income, depreciation and total net margin are all according to plan.”