Key Takeaways
- DST Global raised $165.0M (Growth) from DST Global, Neuberger Berman.
- Sector: Financial Services & Fintech.
- Geography: United States.
Analysis
Upgrade, Inc., a fintech company delivering affordable, responsible credit and banking products to mainstream consumers, today announced a $165 million equity investment in a Series G round. The financing enhances Upgrade's product suite and distribution as it continues to scale.
The Series G round was led by Neuberger Berman, with participation from LuminArx Capital Management. Existing shareholders, including DST Global, Ribbit Capital, and others, also increased their investments. Peter Sterling, Head of Specialty Finance at Neuberger, is joining Upgrade's Board of Directors.
Since its inception in 2017, Upgrade has delivered over $42 billion in affordable credit to more than 7.5 million customers. The company offers a broad range of products, including Personal Loans, Credit Cards, Mobile Banking, BNPL, Home Improvement Financing, and Auto Financing, distributed through partnerships with hundreds of airlines, cruise lines, travel brands, contractors, and car dealers nationwide.
"Upgrade represents a unique opportunity in fintech. While many players struggle with customer acquisition costs and monetization, Upgrade has achieved profitable growth through a multi-product, multi-channel approach and cost-efficient distribution," said Peter Sterling. "We have known Renaud Laplanche and the team for over a decade and are excited to deepen our partnership."
Milestones emphasized by the company include $2 billion in cumulative home improvement financing and $1 billion in auto financing, reflecting rapid expansion of these products since their launches in the past few years. Upgrade CEO and co-founder Renaud Laplanche stated, "We are thrilled to broaden our relationship with Neuberger and welcome Peter to the board as we accelerate product development and broaden distribution to help more mainstream consumers access essential banking and credit products."
To date, Upgrade has raised $750 million in equity capital since inception. BofA Securities served as the exclusive placement agent for the round.