Upgrade, a lending startup that counts Banco Santander SA and SVB Financial Group’s Silicon Valley Bank as investors, is seeking to triple its valuation in a fresh funding round, according to a person with knowledge of the matter.
The company, advised by FT Partners, has begun discussions with growth-focused private equity firms, among others, about raising $200 million at a valuation of $3 billion or more, the person said. The terms of the funding round aren’t finalized and could change.
Founded in 2016, San Francisco-based Upgrade pitches itself as a provider of “affordable and responsible” credit to consumers. The company in January launched a no-fee mobile checking account offering 2% cash back on recurring payments and spending on common expenses like food and gas, and 1% on other debit charges.
Upgrade’s flagship credit card product on average generates $1 billion in new credit lines per year, it said at the time. The company, which also offers personal loans of up to $50,000, has over 500,000 customers who have collectively borrowed more than $5 billion, its website shows.
Upgrade is led by Chief Executive Renaud Laplanche, the co-founder of LendingClub. In 2018, he was
Last June, Upgrade raised fresh funding from backers including Santander InnoVentures, Silicon Valley Bank, Union Square Ventures, Ribbit, Vy Capital, Uncorrelated Ventures and Ventura Capital. It was valued at $1.05 billion, PitchBook data shows.
Representatives for Upgrade and FT Partners didn’t immediately respond to requests for comment.
Fintech startups have attracted capital from banks and institutional investors. This month, Amsterdam-based payment service provider Mollie said it raised $800 million, valuing it at more than $6.5 billion, while the “buy now pay later” specialist Klarna
