Specifically, Updraft recently finalised a GBP 250 million forward flow arrangement with Jefferies and Santander Corporate and Investment Banking. These developments position Updraft to advance its mission of assisting UK households in transitioning away from costly credit cards and overdrafts.
The newly closed arrangement aimed to set the stage for Updraft's expansion from 2023 into 2024, enabling the company to guide customers toward debt reduction through transparent payoff avenues. Updraft's growth strategy includes implementing value-added features to shift users from borrowers to savers, exploring new channels to reach different customer segments.
This successful fundraising round marks the conclusion of Updraft’s efforts for 2023. The company uses risk models that were designed to compete with traditional bureau-based credit risk models by incorporating bureau data, Open Banking data, and behavioural data to improve credit risk underwriting and reduce credit costs. According to the official press release, Updraft has helped individuals to regain control of their finances, facilitating the payment of over GBP 225 million in credit card and overdraft debt.
According to the same source, Updraft representatives expressed satisfaction with the deal's closure, emphasising its potential to serve more customers and provide an extended timeframe for refining products, processes, and growth strategies.
Officials from Jefferies affirmed confidence in Updraft's processes and underwriting capabilities, noting their ability to manage a high-performing loan book. The advisory role played by Alantra in the design and execution of the forward flow arrangement was acknowledged by Updraft.
In addition, the company has announced a further GBP 22 million Mezz and equity investment to complete the buildout of a GBP 200m balance sheet facility led by Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments.
In December 2022, Updraft has successfully secured GBP 108 million in a financing round comprising both equity and debt. The senior debt component, totalling GBP 100 million, was spearheaded by NatWest, with participation from Hampshire Trust Bank, resulting in the establishment of a GBP 160 million senior debt facility for Updraft.
Equity funding of GBP 8 million was led by LC Nueva and Auluk Investment, with notable contributions from investors such as David Callard, Majlis Investments, and Faber Capital.
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