Upgrade, a fintech startup that turns credit card balances into installment loans, raised a Series F round of $ 280 million to a pre-money valuation of $ 6 billion, doubling its valuation from to only three months ago.
The cycle was led by Coatue Management and DST Global. Dragoneer Investment Group and existing investors including Gopher Asset Management, G-Squared, Koch Disruptive Technologies, Old Well Partners, Ribbit Capital, Sands Capital, Ventura Capital and Vy Capital also participated in the round.
Started by former LendingClub chief Renaud Laplanche, Upgrade closed a $ 105 million Series E round at a pre-currency valuation of $ 3.325 billion in August.
The Upgrade Card turns every balance into a fixed rate installment plan and pays cardholders rewards as they pay off their balance.
Since its launch in 2017, Upgrade has provided over $ 10 billion in credit to Americans through cards and loans and is on track to add an additional $ 8 billion this year. It now also offers rewards checking accounts with debit cards that pay 2% rewards on daily transactions and monthly subscriptions.
The company also recently launched Upgrade Bitcoin Rewards Card, a credit card that pays out rewards in bitcoin rather than cash, allowing consumers to reap the potential benefits of bitcoin without putting their own money at risk upfront.
“Upgrade is an exciting example of a credit-driven neobank,” said Philippe Laffont, Founder and CEO of Coatue Management. “Credit is a key part of banking and has been a major source of income for banks. We are excited about Upgrade’s innovative credit products which we believe can help the company capture a significant share of the mobile banking market. ”