Mobile credit and banking platform Upgrade, Inc. Tuesday (November 16) announcement it raised $ 280 million in a Series F fundraiser led by Coatue Management and DST Global, and now has a pre-monetary valuation of $ 6 billion.
Other companies participating in Upgrade’s fundraising include Dragoneer Investment Group and existing investors Gopher Asset Management, G-Squared, Koch Disruptive Technologies, Old Well Partners, Ribbit Capital, Sands Capital, Ventura Capital and Vy Capital.
“This new cycle comes just four months after our E Series and demonstrates Upgrade’s rapid growth and commitment to providing innovative financial products that benefit consumers,” said Renaud Laplanche, co-founder and CEO of Upgrade.
The upgrade card “promotes responsible credit by turning every balance into a fixed rate installment plan and paying rewards to cardholders as they pay off their balance,” according to the announcement from the society.
Upgrade has provided more than $ 10 billion in affordable credit to consumers through cards and loans since its launch in 2017 and is expected to deliver $ 8 billion this week.
The company launched a Rewards Checking account with a debit card with 2% cash back to consumers on daily spending. Upgrade also recently launched the Bitcoin Rewards Card, a credit card that pays out rewards in bitcoin.
The company has raised $ 600 million in equity since launch. Financial Technology Partners LP and FTP Securities LLC (FT Partners) acted as financial and strategic advisors to Upgrade in this transaction.
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October / November edition of PYMNTS Next-Gen Debit Tracker® shows continued growth in mobile wallet payment methods for the next two years, with mobile contactless transactions set to overtake contactless card transactions by now 2023.
The use of Apple Pay, PayPal and Venmo as alternatives to using contactless cards is expected to increase by up to 92%, largely due to the security provided by tokenization and increased payment capabilities multi-channel mobile wallets and personal portable devices.