UK lender Abound secures £800m in financing round

UK-based credit technology firm Abound secures £800m in new financing round, including equity and debt financing from Citi and GSR Ventures.

Abound, a UK-based credit technology firm, has recently announced the successful completion of a new financing round, raising up to £800 million in a combination of equity and debt financing. This funding round includes an asset-backed debt financing arrangement from existing investor Citi, as well as a Series B equity component led by Silicon Valley-based GSR Ventures. This latest round of financing comes on the heels of a £500 million equity and debt raise secured by Abound last year.

Founded in 2020 by Gerald Chappell and Dr. Michelle He, Abound prides itself on offering borrowers access to more affordable loans compared to traditional lenders. The company has already issued over £300 million in loans to date. With the new funding in place, Abound is looking to expand its presence in the UK market by venturing into prime lending. The company also aims to double its workforce from 65 to 130 employees this year.

One of the key areas where Abound plans to invest the new funds is in its proprietary AI-powered credit technology platform, Render. This platform leverages customers' open banking data to quickly assess their borrowing capacity. By using Render, Abound believes it can help enterprises make smarter credit risk decisions and extend their services to a wider range of customers, including those who may be considered "credit invisible."

Abound's latest financing round marks a significant milestone for the company as it looks to expand its reach in the UK market and enhance its technological capabilities. With a focus on providing more affordable loans and leveraging AI-powered solutions, Abound is poised for continued growth and success in the competitive credit technology sector.