The American neobank Upgrade Inc. launched its operations in 2016. Since its inception in 2017, Upgrade has obtained $600 million through equity funding and provided more than $10 billion in loans to customers. The headquarters of Upgrade currently reside in San Francisco while the company operates offices throughout Phoenix and Montreal. Through its consumer lending product line, the company provides fixed-rate loans and credit cards to banking customers. Other than credit monitoring, the company provides education tools to its users.
The neobank Upgrade provides mainstream consumers with credit access through cards and personal loans in addition to free credit monitoring services that assist in financial education. The innovative credit card from Upgrade Card allows retail stores in the U.S. to offer installment credit services at low prices to their millions of locations. On the other hand, Upgrade Account provides mobile banking services to regular consumers.
Mission
The core objective of Upgrade focuses on delivering credit solutions at low prices to customers so they can build financial strength and achieve stability. The company uses modern technology and analytical decision systems to deliver financial products which adapt to individual customer requirements. Through their transparent practices along with their responsible lending culture, Upgrade maintains strong customer relationships which lead to financial goal achievement for their stakeholders. Such as:
- Employee benefits.
- Competitive salary and stock option plan.
- Medical, dental and vision insurance coverage along with other benefits are fully funded by the company.
- Flexible PTO.
- Opportunities for professional growth and development.
- Paid parental leave.
- Health & wellness initiatives.
Core Values
The business of Upgrade maintains customer focus through its dedication to prioritize client demands in each business aspect.
Transparency represents an essential value to Upgrade because it promotes open communication and honest work-related decisions throughout the organization.
The company dedicates itself to ongoing growth through continuous advancement, which motivates personnel to identify fresh concepts that fuel innovation.
The company promotes diversity and inclusion because Upgrade acknowledges how these aspects build robust teams by creating respectful spaces where every person feels valued.
The company was founded in August 2016 by Renaud Laplanche along with his former colleagues from Lending Club and other co-founders. The company initiated its loan service during April 2017 while conducting a $60 million Series A funding round.
Upgrade debuted their personal credit line solution to customers at the LendIt Conference in San Francisco during April 2018. Upgrade introduced Upgrade Card to the market during October 2019 as a payment solution that accepts credit cards while offering installment options to users. The equity round of Series D in June 2020 gave Upgrade a valuation of $1 billion with Santander Group serving as the lead investor.
Card program
The venture capital arm of Santander Group led a $40 million Series D funding round which elevated Upgrade to its status as a unicorn during the previous year. The company has achieved total fundraising exceeding $300 million. Koch Disruptive Technologies (KDT) took charge of the funding round that also received contributions from both new and existing investors BRV and Ventura Capital. Through its banking division, Upgrade supplies customers with credit through loan and card products as well as retail banking services including rewards checking. Through its Upgrade Card program, the company provides rewards to its customers as they lower their outstanding debt.
Since its inception, the company has provided customers with $7 billion in financing and seeks to double this value by 2021.
The co-founder and CEO of Upgrade is Renaud Laplanche, who established the company in 2017 and comes from a background of being a French entrepreneur and a LendingClub founder. Laplanche describes his company’s recent year as one of “unprecedented growth” along with profitability which he plans to use for “designing innovative products”.
Upgrade received $105 million in Series E funding during August 2021 from Koch Disruptive Technologies which established a $3.3 billion value for the company.
Upgrade achieved the status of fastest-growing credit card in the US when the Nilson Report published its data in September 2021.
The financial news outlet CNBC announced in November 2021 that Upgrade achieved an 83% valuation increase during four months. Following its $280 million Series F funding led by Coatue Management and DST Global.
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