Online lender Creditspring has raised £48 million bringing its total raised to date to £70 million. Creditspring did not provide details on the funding nor whether it was debt or equity financing.
Creditspring is an FCA-regulated “credit subscription service” that also provides educational tools alongside no-interest loans for short term credit to help the UK’s 12-15 million ‘near-prime’ borrowers.
Creditspring said the funds will be used to support more members as the cost of living increases due to inflation. The company believes that one in six (16%) UK adults will need to borrow in the coming months. Over the course of 2022, Creditspring intends on lending £100 million to through its fixed-cost subscription loan services. This compares to a total of £25 million lent in 2021.
Creditspring reports users increasing by 50% – from 100,000 to 150,000 – since the start of 2022 and the company expects to add another 200,000 members by the end of the year.
Neil Kadagathur, co-founder and CEO of Creditspring, commented:
“The significant growth in our customer numbers over the past six months highlights just how many people in the UK are in need of additional financial support. As people increasingly turn to borrowing to survive the cost of living crisis, it creates a perfect hunting ground for predatory lenders who do not have the best interests of their customers at heart. We must do all we can to help people reduce their chances of falling into unmanageable debt – never has this been more important than it is today.”
Chip Dunn, lead investor and Founder and CEO of Monomyth Group, said:
“Creditspring is proving to be a major disruptor in the lending sector, providing a much-needed alternative to high-cost, short term loans. Its pioneering subscription finance model is making lending more inclusive, responsible, and fair at a time when borrowers need these qualities most. Creditspring is driving real, positive change for people across the UK, and we are proud to be with them on this journey.”