Creditspring, which Aims to Simplify Emergency Borrowing, Secures £8,056,088 via Seedrs

Creditspring, which is on a mission to make “emergency” borrowing simpler and safer, has raised £8,056,088 or over 100% of its £8,034,420 target from 118 investors (at the time of writing) via Seedrs through its crowdfunding campaign (with 26 days left in the sale).

Located in London, Creditspring operates in the Finance & Payments sectors (Digital B2C).

Incorporated in December 2016, the firm reports a Valuation (pre-money) of £85.3 million.

Equity offered is: 8.63%; Share price: £56.28; Tax relief: N/A.

Business highlights are as follows:

  • Over 150k members- 10x growth in paid memberships in 18 months
  • Over £600k MRR- And over £11m revenues contracted life to date*
  • Strong unit economics- 20/1 LTV/CAC on a gross basis
  • Customers love us- 4.7/5 stars across two platforms

Key features are: Secondary Market; Seedrs nominee min. £56.28 +.

As noted in the update, inflation is here. As a result, emergency borrowing “is going to be more and more necessary across the UK.” Yet most options “come with confusing terms, high costs and risks of debt spirals.”

At Creditspring, they’re on a mission “to make emergency borrowing safer, simpler, and less stressful.” They do this by “removing interest charges that can spiral out of control and swap them for a fixed monthly membership fee.”

By removing interest rates, they “offer two unique value propositions that very few other lenders can claim, 1) It’s very easy to evaluate the true cost of borrowing and 2) Your costs will never increase, meaning no more risks of a debt spiral.”

While their no-interest loans are our USP, “that’s not all.” They support members “along the way with personalised scores, financial education, credit building and more.”

More than just a lender, a Creditspring is “as an operating system for people who want to improve their finances.”

Creditspring mainly “generates revenues from membership fees.” They reportedly “have 4 membership plans, with 3 of them paid (Step, Core, Plus) and one free (Silver).”

99% of their revenues “come from the above membership fees right now, but we see potential in future platform fees connected to our Stability Hub.”

The company “projects a gross profit (what is left of revenues after taking out funding costs and credit losses) on the past 34 consecutive lending cohorts.”

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