Avolta is delighted to have acted as financial advisor to Updraft on the closing of a £272 million debt and equity round.
Updraft provides loan refinancing solutions, enabling its members to understand their financial profile, forge positive habits with their money, and make changes that pay off in the long term.
Combining smart algorithms, Open Banking and credit reference data, Updraft helps build a full picture of a user’s financial profile. It then serves bespoke recommendations to establish practical, beneficial habits and deliver routes to pay off borrowings in the most effective possible way.
Updraft has built a customer base of over 500,000 users and has successfully empowered individuals to take back control of their finances, by paying off more than £225 million in credit cards and overdraft debt.
The forward flow arrangement with Jefferies and Santander Corporate and Investment Banking, allowing the business to build on its mission to help UK households move away from expensive credit cards and overdrafts.
Updraft also announced a further £22M million Mezz and equity investment. Mezz capital is debt capital and ranks higher than equity. This will complete the buildout of a £200 million balance sheet facility and fuel growth in 2024 led by Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments.
Updraft’s growth plans will see more value-added features to turn users from borrowers to savers, and test new channels to reach new customer segments while staying on course to be the leader in financial support and guidance.