While the release did not disclose any financial terms of the deal, the pre-money valuation of the startup was believed to be around $500 million, according to Axios.
The Upgrade platform has facilitated over $1 billion in originations of affordable consumer loans since inception, the official statement said.
The new financing will fuel Upgrade’s continued product innovation on the heels of the launch of its Personal Credit Line and the expansion of Credit Health, Upgrade’s credit monitoring and education product. Personal Credit Line seeks to combine the low cost, fixed rate and monthly amortization of personal loans with the flexibility and utility of lines of credit typically obtained through credit cards.
“The new capital will enable continued investments in product, credit analytics, compliance, risk management and expansion of our San Francisco, Phoenix, Montreal and Chicago offices,” said Renaud Laplanche, co-founder and CEO of Upgrade. “We are seeing a growing desire from consumers to better understand their overall credit situation and to learn to make great financial decisions that give them access to more affordable credit.”
Upgrade has raised $142 million in equity since inception in 2016. This $62-million Series C round includes the conversion of all previously issued convertible notes. All major existing investors including Apoletto, FirstMark Capital, NOAH, Ribbit, Sands Capital Ventures, Silicon Valley Bank, Union Square Ventures and Vy Capital participated in the Series C round.
Founded in February 2016, CEFIF invests in fintech companies from around the world and has an equivalent of $1 billion in total committed capital.
This year, the fund has so far backed more than 10 fintech companies of different stages, ranging from seed to Series E.
Its parent firm CreditEase is a leading fintech company in China, specializing in small business and consumer lending as well as wealth management for high net-worth and mass affluent investors. Its majority-owned subsidiary Yirendai, an online consumer finance marketplace, is listed on the New York Stock Exchange.