Prime Highlights:
- Upgrade raises $165 million, achieving a valuation of $7.3 billion, marking its first funding round since 2021.
- CEO Renaud Laplanche says the company is 12–18 months away from an IPO and aims to offer liquidity to employees before going public.
Key Facts:
- Annualized revenue has more than doubled, surpassing $1 billion in May 2025, with growth in personal loans, credit cards, BNPL, and other financial services.
- Loan originations in home improvement and auto financing crossed $2 billion and $1 billion, respectively, earlier this year.
Key Background:
Fintech firm Upgrade has raised $165 million in its first funding round since 2021. The round was led by Neuberger Berman, with additional participation from LuminArx Capital Management. The new investment pushes the company’s valuation to an impressive $7.3 billion, according to co-founder and CEO Renaud Laplanche.
Laplanche, who previously founded LendingClub, launched Upgrade in 2016 with the aim of making credit more affordable and accessible. He noted that despite being cash flow positive for the past three years, the company decided to raise funds to strengthen its balance sheet and offer liquidity to employees ahead of a potential initial public offering (IPO).
“We’ve been profitable and growing steadily, but this funding gives us flexibility and allows some early team members to sell a portion of their stock without waiting for the IPO,” Laplanche said.
Since its last funding round, Upgrade’s yearly revenue has more than doubled, crossing $1 billion in May 2025. The company, which began by offering personal loans, has now expanded into credit cards, savings and checking accounts, credit score tools, and buy now, pay later (BNPL) services. Its $100 million purchase of travel-focused BNPL firm Uplift in 2023 helped strengthen its reach in the travel finance market.
As fintech competition grows, with firms like SoFi, Chime, PayPal, and Klarna expanding, Upgrade aims to offer customers faster and easier financial services.
As competition in fintech grows, with companies like SoFi, Chime, PayPal, and Klarna expanding their offerings, Upgrade is focused on providing customers with faster and more convenient financial services.
CEO Renaud Laplanche said the company is about a year to a year and a half away from an IPO, marking another major step in its goal to become a top player in consumer finance.
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