Money

Credit card startup ‘upgrade’ appreciates to $ 6.28 billion |


Upgrade is a fintech start-up that turns your credit card balances into installment loans. He closed a fundraiser that valued the start-up at around $ 6.28 billion.

The upgrade was successful in raise $ 280 million in its Series F cycle, led by new investors Coatue Management and DST Global. The increase was an 83% jump from a previous round made this year, which values ​​the company at $ 3.43 billion.

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The company’s turnover had experienced strong growth of around 70% from July to October, which were the 2 fundraising periods.

How is the upgrade different from traditional maps?

The main product offered by Upgrade is a card that turns your purchases into a fixed rate installment loan. This makes it the new company to benefit from such a trend in fintech that revolves around “buy now, pay later”.

Traditional cards have charged over 18% in a year while the upgrade starts at an interest rate of 8.99%. This is why they are among the fastest growing cards in the country.

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Renaud Laplanche, who is the CEO of Upgrade, said consumers are discovering the benefits of a product that gives them the convenience of a credit card but doesn’t push them into more debt. Traditional cards have extremely high interest rates excluding fees which make them a bad consumer product. All of these cards were designed to keep these people in endless debt.

Consumer loans are still checked by large credit card companies at banks such as JPMorgan Chase and Citigroup. They don’t want to cut profits from their huge loan portfolios and therefore have very little incentive to copy the user-friendly features of fintech.

Upgrade is preparing to go public before 2023, as CEO Laplanche said.

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