Abound, a UK-based fintech that uses a combination of open banking and artifical intelligence to offer better loan deals to consumers, has raised £500 million in a mixture of debt and equity finance.

Finextra.com reports that debt financing comes from Citi and clients of Waterfall Asset Management. Equity investors included K3 Ventures, GSR Ventures, and Hambro Perks.

This latest investment brings the total raised to date by Abound up to £570m.

Founded in 2020 by two senior credit experts from McKinsey and EY, Abound offers borrowers better interest rates by looking at their complete financial picture, rather than relying on just a credit score.

Abound is currently able to offer loans between £1,000 and £10,000 repayable for up five years with a 24.8% APR (annual percentage rate).

The company says it has been growing 30% month-on-month and served over 150,000 customers through its service.

Aiming to have £1 billion on its balance sheet by 2025, Abound says the new funding will be used to increase its headcount and to further develop its business-to-business offer, allowing other banks and lenders to take advantage of its technology.

“This latest investment, which comes from a mixture of tech multinationals to global banks, is a testament to the demand and success of our service, particularly in this current challenging economic landscape,” Gerald Chappell, CEO and co-founder, said.

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