(Reuters) -Consumer finance fintech Upgrade said on Thursday it raised $165 million in its latest funding round, nearly four years after its last external financing during the height of the 2021 fintech boom.
The round valued Upgrade at $7.3 billion pre-money, according to a source familiar with the matter, a 21.7% premium to its previous valuation.
“We’re probably 12 to 18 months away from an IPO, so we wanted to give the team members some liquidity before IPO,” Upgrade CEO Renaud Laplanche told Reuters in an interview.
Fintech startup investment surged in 2021 on low rates and abundant capital, but cooled in subsequent years as inflation soared and the Fed hiked interest rates.
A rebound in equities and easing macro concerns have revived initial public offerings, with fintechs returning to market after a years-long slump.
Swedish fintech Klarna and neobank Chime have debuted in New York in recent months.
The round was led by investment firm Neuberger, which also buys loans from Upgrade. Neuberger’s Head of Specialty Finance, Peter Sterling, has joined Upgrade’s board of directors.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Tasim Zahid)
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