Abound announces new financing round
UK-based credit technology company, Abound, has announced a new financing round which in aggregate could extend to £800m.
The funding is a mixture of debt and equity. Abound will use the new funding to expand into prime lending in the UK. In addition, it will roll-out Render, its proprietary AI credit technology platform, globally.
Abound is one of the UK’s fastest-growing fintechs. It has issued over £300m in loans to date. Last month it said it was aiming to double the size of its team from 65 to 130 people this year.
Series B equity round led by GSR Ventures
The new funding includes a multi-year asset backed debt financing arrangement (backed by loan originations) from existing financier Citi. The Series B equity round component was led by Silicon Valley-based GSR Ventures.
Abound’s AI technology, Render, scans customers’ bank transaction data to understand each person’s unique financial situation. It then determines how much they can afford to repay each month.
The Render technology means that Abound sees 75% fewer defaults than the industry standard. As a result, Abound is able to offer lower interest rates to consumers than they can typically find elsewhere. This market leading credit performance is also the reason that existing investors are continuing to back Abound.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Thank you!
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
Gerald Chappell, CEO and co-founder of Abound and Render, said: “A new investment of this size, which comes from a mixture of VC funds and global banks, is a testament to the demand for and success of Abound and Render. It speaks to the confidence investors have in our business to keep growing and in our AI-powered technology to continue transforming consumer credit.”
Jefferson Chen, partner at GSR Ventures, added: “We are thrilled to expand our partnership with Abound. It is harnessing the power of AI and open banking to revolutionise credit decisioning. Their data-driven approach allows for more accurate risk assessments. This enables them to extend affordable credit to a wider range of customers in the UK and internationally. Abound is at the forefront of responsible innovation in financial services, and we are confident their solutions will drive financial inclusion on a global scale.”
