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Upgrade almost doubles valuation on $280 million funding round

Upgrade almost doubles valuation on $280 million funding round

Upgrade, a fintech startup that turns credit card balances into installment loans, has raised a $280 million Series F round at a $6 billion pre-money valuation, effectively doubling its valuation from just three months ago.

The round was 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.

Launched by former LendingClub Chief Renaud Laplanche, Upgrade closed a $105 million Series E round at a $3.325 billion pre-money valuation in August.

The Upgrade Card turns every balance into a fixed-rate installment plan, and pays rewards to cardholders as they pay down their balance.

Since launching in 2017, Upgrade has delivered over $10 billion in credit to Americans through cards and loans and is on track to add another $8 billion this year. It now also offers rewards checking accounts with debit cards that pay 2% rewards on everyday transactions and monthly subscriptions.

The company also recently launched Upgrade Bitcoin Rewards Card, a credit card that pays rewards in bitcoin rather than cash, allowing consumers to enjoy the potential upside of bitcoin without putting their own money at risk upfront.

"Upgrade is an exciting example of a credit-led neobank" said Philippe Laffont, founder and CEO of Coatue Management. "Credit is a key component of banking and has been a major source of revenue for banks. We are excited by Upgrade's innovative credit products that we believe can help the company capture a significant share of the mobile banking market".

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