London-based Abound, a leader in credit technology, made a significant announcement on Tuesday, May 6, revealing its successful procurement of £0.8B (approximately €0.9B) in debt and equity during a fresh funding round, pushing its total funding to £1.3B (approximately €1.5B).
This funding round comprises a multi-year asset-backed debt financing agreement with Citi, supported by loan originations. Additionally, the Series B equity round was spearheaded by GSR Ventures, a prominent Silicon Valley firm.
Abound intends to utilize these funds to penetrate the prime lending sector in the UK and introduce Render, its proprietary AI credit technology platform, to global markets.
Gerald Chappell, CEO and co-founder of Abound and Render, expressed enthusiasm regarding this substantial investment, attributing it to the growing demand for Abound’s services and the remarkable success of Render. He underscored the confidence investors have in their business’s expansion and the continuous evolution of their AI-powered technology, which is reshaping consumer credit.
Abound’s Mission: Offering Affordable Loans
Established in 2020 by Gerald Chappell and Dr. Michelle He, Abound is a financial services provider leveraging Open Banking and artificial intelligence to offer borrowers more accessible loans compared to traditional lenders.
At the core of Abound’s operations lies Render, its cutting-edge AI technology. Render analyzes customers’ bank transaction data to tailor loan terms according to their unique financial circumstances, contrasting with traditional credit checks reliant on statistical averages, which often prove inaccurate.
With Render in action, Abound claims to witness 75% fewer defaults than the industry standard. Having tested the technology on over 5 million credit decisions and reviewed 3 billion banking transactions, Abound’s commitment to accuracy and inclusivity is evident.
Presently, the company offers loans ranging from £1,000 to £10,000, repayable over five years, with a competitive 24.8% APR (representative). Having already disbursed over £300M in loans, Abound aims to double its workforce from 65 to 130 employees this year.
Abound operates under the regulation of the Financial Conduct Authority and complies with Data Protection Regulations 2018, registered with the UK Information Commissioner’s Office.
Michelle He, co-founder of Abound and Render, emphasized the transformative potential of their approach, asserting that embracing Open Banking and AI-driven credit assessments can lead to more affordable rates and enhanced financial inclusion.
Partnering for Progress:
GSR Ventures, renowned for its early-stage investments in AI-enabled fintech, healthcare, enterprise software, and consumer platforms, reaffirms its commitment to innovation by partnering with Abound.
Jefferson Chen, partner at GSR Ventures, commended Abound’s data-driven approach, highlighting its ability to offer accurate risk assessments and extend affordable credit to a wider customer base in the UK and beyond. He expressed confidence in Abound’s ability to drive financial inclusion on a global scale, positioning the company as a leader in responsible financial innovation.
Source: siliconcanals.com
