Abound Secures £800 Million in Funding, Aims to Disrupt Consumer Lending with AI
Abound, a British technology-driven lending firm, has secured £800 million in its latest funding round, bolstering its position to disrupt the consumer lending market. The round saw participation from prominent investors, including Scottish billionaire Sir Tom Hunter.
The funding comprises a debt facility from Citigroup and equity investments from existing backers, including GSR Ventures, Sir Tom Hunter's investment firm, and Hambro Perks. This significant investment signifies strong confidence in Abound's innovative approach and growth potential.
Founded in 2020 by Gerald Chappell and Michelle He, Abound has quickly gained traction, already providing £300 million in loans. The company focuses on borrowers who may face challenges obtaining credit from traditional banks, offering them access to fair and transparent financial solutions.
Central to Abound's success is its AI-powered credit decision technology, Render. By analyzing prospective borrowers' bank transaction data, Render assesses their creditworthiness and ability to repay loans. This innovative approach enables Abound to serve customers directly and offer its technology to other lenders in Europe.
The fresh capital will fuel Abound's ambitious growth plans, including expansion into prime lending in the UK and scaling up its business-to-business operations globally. While specific details about the funding split or valuation remain undisclosed, Abound's leadership expresses confidence in the company's trajectory, citing the strong investor support as a testament to its success.
With plans to unveil its first profit in its upcoming financial accounts, Abound is poised for further expansion and innovation in the consumer lending market. The company's AI-driven solutions aim to meet the evolving needs of borrowers and lenders alike, shaping the future of financial inclusion and accessibility.