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Abound, a British technology-driven lending firm, has successfully raised £800 million in its latest funding round, with support from investors including Scottish billionaire Sir Tom Hunter.
The financing comprises a debt facility from Citigroup and equity investments from existing backers, including GSR Ventures, Sir Tom Hunter’s investment firm, and Hambro Perks.
Founded in 2020 by Gerald Chappell, former McKinsey partner, and Michelle He, previously at EY, Abound has quickly gained traction in the lending space, having already provided £300 million in loans. The company aims to disrupt consumer lending by focusing on borrowers who may face challenges obtaining credit from traditional banks.
Central to Abound’s approach is its use of artificial intelligence, particularly its AI-powered credit decision technology known as Render. By analyzing prospective borrowers’ bank transaction data, Render assesses their creditworthiness and ability to repay loans. This innovative approach has enabled Abound to serve customers directly and offer its Render technology to other lenders in Europe.
The infusion of capital will accelerate Abound’s growth plans, including expansion into prime lending in the UK and scaling up its business-to-business operations globally. Despite not disclosing specific details about the funding split or valuation, Chappell expressed confidence in the company’s trajectory, citing the strong investor support as a testament to Abound’s success.
With plans to unveil its maiden profit in its upcoming financial accounts, Abound is poised for further expansion and innovation in the consumer lending market, leveraging AI-driven solutions to meet the evolving needs of borrowers and lenders alike.
