Venture Capital: UK Fintech Abound Lands $601M
Abound raised a mix of debt and equity at an undisclosed valuation.
Abound, a UK-based consumer lending service, has raised £500m ($601m) in equity and debt funding to expand its open banking business. The start-up, which uses open banking data and machine learning algorithms to offer lower interest loans and develop “better credit scores”, will use the funds to finance loans, bring in more customers and invest in its technology.
Its new funding includes debt from Citibank and Waterfall Asset Management and equity from K3 Ventures, GSR Ventures and Hambro Perks. The debt will be used for lending, while the smaller equity part will be used for investing in the business itself.
Abound did not disclose the valuation for the fundraising round.
Abound’s service, which is based on loans of between £1,000 and £10,000, has grown 30% month-on-month since launching in 2020. It has issued loans to more than 150,000 customers to date, and is said to be on track to loan out £1 billion ($1.2 billion) by 2025.
Furthermore, in the last two years, the startup has had 70% fewer default rates than the industry average in the U.K.
“The lending industry is dominated by old practices, like traditional credit scoring, which ignores technological developments of the last decade,” noted Kuok Meng Xiong, CEO of K3 Ventures, in a statement. “Abound is delivering a unique product and a differentiated approach which is already proving itself to work for thousands of customers.”
Abound also plans to expand its business-to-business service in Europe.
Related Story: Hong Kong-Based FundPark Provides Collateral-Free Loans To SMEs
Latest Alternative Investment News
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….