Abound, a UK-based fintech that leverages open banking and artificial intelligence to provide consumers with improved loan deals, has successfully raised £500 million through a combination of debt and equity financing.
The debt financing was secured from Citi and clients of Waterfall Asset Management, while equity investors included K3 Ventures, GSR Ventures, and Hambro Perks. With this latest investment, Abound has raised a total of £570 million to date.
Founded in 2020 by two seasoned credit experts from McKinsey and EY, Abound evaluates borrowers’ complete financial profiles instead of solely relying on credit scores to offer better interest rates. The company currently provides loans ranging from £1,000 to £10,000, which can be repaid over a period of up to five years, with an APR of 24.8%.
As the consumer division of Fintern Ltd, which also owns Render—the proprietary technology utilized by Abound— the company reports a monthly growth rate of 30% and has served over 150,000 customers.
With a goal to accumulate £1 billion in assets by 2025, Abound plans to use the new funding to expand its workforce and enhance its business-to-business offerings, allowing other banks and lenders to benefit from its technology.
Gerald Chappell, CEO and co-founder, remarked, “This latest investment, backed by a mix of tech multinationals and global banks, reflects the demand and success of our service, especially in today’s challenging economic environment.”