Upgrade Inc., a San Francisco-based fintech, said it raised $40 million in Series D funding led by Santander Innoventures, the venture capital arm of Spain’s Santander Group.
The funding will be used to help continue the growth of the Upgrade Card, which offers installment credit to existing retailers across the U.S., as well as to launch a mobile banking product called Upgrade Account.
“We’re excited to support Upgrade in their next stage of growth,” Chris Gottschalk, senior adviser at Santander Innoventures, said in a release from Upgrade. “Upgrade is building a neobank with credit at its heart, which we believe is a smart strategy as credit represents 70% of banking revenue globally and is often the main reason customers seek banking services.”
Other investors participating in the round include Ventura Capital, Uncorrelated Ventures and existing investors Union Square Ventures, Ribbit, Vy Capital and Silicon Valley Bank.
San Francisco-based Upgrade has delivered more than $3 billion in credit and loans since the company opened in 2017. The company has raised more than $200 million since inception.
Upgrade’s personal loans and credit lines are issued by Fort Lee, New Jersey-based Cross River Bank.