Creditspring raises £48m to improve financial stability across UK
London-based fintech lender Creditspring has bagged £48 million in a funding round which it says will be used to improve financial stability across the UK.
London (UK)- The company says its latest funding round, which takes its total funding raised to date to £70 million, will be used “to support more members to avoid high-cost, unscrupulous lenders and manage their finances through the cost of living crisis”.
Launched in 2016, Creditspring offers an “affordable” credit subscription service and educational tools with easy-to-use, no-interest loans for short-term credit.
“Members have access to two loans per year, with clear repayments, capped costs and no hidden charges or confusing interest rate charges,” the firm says.
This year, the FCA-regulated firm plans to lend £100 million through its services, compared to £25 million in 2021.
Creditspring claims its membership has increased by 50% – from 100,000 to 150,000 since the start of the year, with the expectation it will add a further 200,000 by year-end.
The fintech says it will also deploy the new funds to “substantially” grow its team, aiming to double the number of employees across all business areas, including data, engineering and customer operations.
Neil Kadagathur, Creditspring co-founder and CEO, says: “The significant growth in our customer numbers over the past six months highlights how many people in the UK need additional financial support.
“This fundraiser allows us to deliver on our mission to help people across the UK build their financial stability with access to affordable credit and practical guidance.”