Upgrade, a Fintech focused on providing credit, has surpassed $40 billion in credit, serving over 7 million customers.
Launched in 2017, Upgrade was founded by Fintech OG Renaud Laplanche. While launching with a credit anchor, Upgrade is now more of a neobank providing services like mobile banking and payments.
Upgrade claims to have built a platform with six core products: Personal Loans, Credit Cards, Mobile Banking, Buy Now Pay Later (BNPL), Auto Financing, and Home Improvement Financing.
More recently, Upgrade partnered with online investment platform Yieldstreet to provide investors with access to private credit investing and passive income related to BNPL loans.
CEO Laplanche says their mission is to bring both responsible and affordable banking and credit to the masses.
“We’re proud to support our customers’ everyday needs with banking products and credit cards, and be there for them during occasional life events like renovating their kitchen, buying a car, or taking their family on a trip.”
Upgrade explains that its multi-faceted approach has helped drive its growth, as it has developed a channel to onboard customers via different paths and then build upon the initial relationship. This also benefits the acquisition cost to provide services while boosting the lifetime value of every single customer.
Upgrade notes that it has boosted its management team by adding Jeffrey Meiler, former CEO of Best Egg, as Chief Operating Officer, Jason Swift as SVP, Operations Strategy, and Sumit Agarwal as Head of Cards.
CI connected with Laplance and asked him how they will continue to tap into credit demand. Laplanche explained that in addition to mobile banking, they offer five credit products that are all at scale (each over a billion dollars in originations): auto loans, personal loans, BNPL, home improvement financing, and credit cards.
“The growth drivers and distribution channels vary by product, but I think what makes Upgrade unique is the multiplicity of distribution channels and the ability to cross-sell other products to consumers coming from these channels,” said Laplanche. “Our merchant networks count thousands of travel partners (including many of the world’s largest airlines and cruise lines), home improvement contractors and car dealerships, all offering various Upgrade products.”
Asked about future products and services, Laplanche said they will continue to make existing products better while making certain they work well with one another. This way their customers can maximize the value of their relationship with Upgrade.
“Many of our customers now have 2 Upgrade products or more. We’re also continuing to innovate and preparing for the launch of a secured personal loan and a cash advance product.”
And what about a public listing? Laplanche says they are working on an initial public offering over the next 18 months.
“We recently exceeded $1 billion in annual revenue run rate, our operations are cash flow positive, and we see predictable growth in the next 3 to 4 years,” said Laplanche.
Recent IPOs have performed well in the market, including those in the Fintech Sector. It appears that now may be the time to have Upgrade shares listed on an exchange. The company’s last valuation (that we could find) was in 2021 at $6 billion.