Abound, a London, UK-based fintech specializing in personal loans, raised £500 million in a combination of debt and equity financing for its AI-powered lending platform.
The new funding includes both debt and equity: with U.S. bank Citi plus clients of Waterfall Asset Management providing the debt portion; and K3 Ventures, GSR Ventures, and Hambro Perks providing equity.
The company will spend the debt and equity raised on hiring and building out its B2B offering, which allows third-party lenders or banks to use its loan technology.
“Our approach to lending remains unique in the finance industry and this latest investment, which comes from a mixture of tech multinationals to global banks, is a testament to the demand and success of our service, particularly in this current challenging economic landscape.,” said Gerald Chappell, CEO and co-founder of Abound.
Abound has provided loans for more than 150,000 users and claims it will have £1bn on its balance sheet by 2025.
Company: Fintern Limited
Round: Debt and Equity
Funding Month: March 2023
Lead Investors: bank Citi plus clients of Waterfall Asset Management, K3 Ventures, GSR Ventures, and Hambro Perks
Company Website: https://www.getabound.com/
Software Category: AI-powered Lending Platform
About the Company: Founded in 2020, Abound is a consumer loans-focused fintech. It offers personal loans between £1,000 and £10,000 repayable for up to 5 years. Abound is using artificial intelligence and Open Banking data to generate a holistic profile of loan applicants, resulting in a mechanism that can offer borrowers better interest rates than traditional institutions that often rely on a credit score alone. The company's mission is to increase access to affordable loans.