Upgrade is a fintech startup that converts credit card balances into installment loans.

Fintech Upgrade announced its $280 million Series F round led by Coatue Management and DST Global. Dragoneer Investment Group and existing investors including Gopher Asset Management, G-Squared, Koch Disruptive Technologies, Old Well Partners, Ribbit Capital, Sands Capital, Ventura Capital and Vy Capital also participated in the round. (Reuters)

Upgrade offers low-cost credit, such as by converting credit card dues into instalment loans, and mobile banking to consumers. Products include a no-fee checking account with cash back, personal loans upto $50K, and a no-fee credit line on a card with cashbacks. Its Upgrade bitcoin rewards card is a credit card that pays rewards in bitcoin rather than cash.

Upgrade raised $105 million just about three months ago at a valuation of $3.4 billion.

Renaud Laplanche, co-founder and CEO, said the new round demonstrated Upgrade’s rapid growth and commitment to delivering innovative financial products that benefited consumers.

In an interview with CNBC Laplanche revealed that Upgrade revenue surged 70% between June and October.

The company has delivered over $10 billion in affordable credit to consumers through cards and loans since inception in 2017 and is on track to deliver $8 billion in 2021. Its affordable card charges interest starting at 8.99% compared to more than 18% per annum by traditional cards.

“They have no interest in changing that behavior,” Laplanche said in the interview. “The Upgrade card is an innovation that should’ve come from the banks, but didn’t. It’s less profitable than a traditional card because the balance comes down faster, but it’s a better deal for consumers.”

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