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

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…