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Updraft raises £16m to help Brits break up with their credit cards

Updraft raises £16m to help Brits break up with their credit cards

Updraft, a London-based startup promising to help users ditch their credit cards, has raised £16 million in equity and debt.

Quilam Capital led the round on the debt side, while the UK Government’s Future Fund participated via their convertible loan note alongside a group of high-net-worth investors.

Founded by former HSBC executive Aseem Munshi, Updraft has developed a part lending, part credit report, and part financial planning app.

The company says it wants to help customers get rid of spend-linked borrowings such as credit cards, overdrafts and increasingly, the buy now, pay later schemes often found on ecommerce sites.

Using open banking and credit report data, Updraft automatically builds a 360-degree picture of a user's spending and borrowing and provides a series of interventions designed to lift the consumer back into the black.

Where expensive borrowing is detected, users can get ‘Updraft Credit’ to pay off these high-interest-rate debts with a lower-cost loan.

After beta testing throughout the year and building up a 40,000-strong waitlist, the FCA-approved service hit the Apple App store last week. An Android version is in the pipeline.

The annual Finextra Fintech Outlook survey, developed in association with Smith & Williamson, seeks to gather the views and opinions of founders and senior management of the Fintech community in the UK with regards to business confidence, talent, tax, funding and the outlook for the future. Click here to participate.


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