Upgrade Secures Funding to Expand Services and Gears Up for IPO
- Upgrade secures $165 million in new funding at a $7.3 billion valuation
- IPO planned within 12-18 months as market conditions improve
- Neuberger leads round, CEO confirms shift to AI driven marketing
Consumer fintech firm Upgrade has raised $165 million in fresh funding, valuing the company at $7.3 billion pre-money, a 21.7% increase from its previous valuation. This is Upgrade's first major external funding round since the fintech boom of 2021.
Renaud Laplanche,CEO of Upgrade, shared that the company is preparing for an IPO within the next 12 to 18 months and wanted to give employees some liquidity ahead of the listing. He said, “We’re probably 12 to 18 months away from an IPO”.
The funding round was led by Neuberger, which also purchases loans from Upgrade. Peter Sterling, Neuberger’s Head of Specialty Finance, has now joined Upgrade’s board. Existing investors DST Global and Ribbit Capital also participated in the round.
Founded in 2017, Upgrade offers a range of consumer credit products including mobile banking, credit cards, personal loans, buy now-pay later, and auto and home improvement financing. The company has already disbursed over $42 billion in credit.
Laplanche also noted a shift in marketing focus, with the company moving from traditional SEO to AI driven search optimization, in response to evolving digital trends.
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The broader fintech market is slowly recovering, with improving macroeconomic conditions and a revival in IPO activity. Recent public market entries by players like Klarna and Chime signal growing investor interest.
Upgrade’s latest raise shows confidence in its growth strategy and positions it well for a strong market debut.
