Abound, a UK-based fintech that uses a combination of open banking and artifical intelligence to offer better loan deals to consumers, has raised £500 million in a mixture of debt and equity finance.
This latest investment brings the total raised to date by Abound up to £570m.
Founded in 2020 by two senior credit experts from McKinsey and EY, Abound offers borrowers better interest rates by looking at their complete financial picture, rather than relying on just a credit score.
Abound is currently able to offer loans between £1,000 and £10,000 repayable for up five years with a 24.8% APR.
The company is the consumer arm of Fintern Ltd, which also owns Render – the proprietary technology being used by Abound to deliver smart loans.
The company says it has been growing 30% month-on-month and served over 150,000 customers through its service.
Aiming to have £1 billion on its balance sheet by 2025, Abound says the new funding will be used to increase its headcount and to further develop its business-to-business offer, allowing other banks and lenders to take advantage of its technology.
Gerald Chappell, CEO and co-founder, says: “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.”