Upgrade, Inc., a credit-focused fintech startup, announced that it has raised a $40 million Series D round that the company says gives it a $1 billion valuation. The company is a fintech startup with a credit-focus today, though it intends to add more neobank-like tooling in Q3.
Key takeaways:-
1. Upgrade, Inc. has a different philosophy than some credit card providers, in the view of its founder and CEO, Renaud Laplanche. “Banks have an incentive to keep customers in debt as long as possible,” he said during an interview with TechCrunch. Upgrade, Inc., in contrast, offers lower rates — cards starting at 6.9%, under what the CEO described as a market-normal entry rate of 12% to 13% — and set repayment periods for debts so that customers don’t wind up in a credit cycle that never ends, sapping them of financial health.
2. One constant in the fintech world is the offering of more services to existing customers, helping drive up their lifetime value (LTV) and thus making their cost to acquire (CAC) more palatable.
Read on
Credit-focused fintech startup Upgrade raises $40M after reaching $100M run rate
This morning Upgrade, a credit-focused fintech startup, announced that it has raised a $40 million Series D round that the company says gives it a $1 billion valuation. The Upgrade round slots neatly into a few trends TechCrunch has noted in recent quarters, including fintech startups raising at ne...
No comments:
Post a Comment