UK-based digital lender Creditspring has raised $60m in funding to offer affordable credit via a subscription model.
The fintech did not divulge more details about the investment, which brings its total funds raised since 2016 to $88m.
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Creditspring will use the proceeds to ramp up its lending capacity and increase its headcount by hiring across engineering, business, data, and customer operations.
The online credit platform believes that one in six UK adults will need to borrow in the coming months due to the rising cost of living.
It plans to offer up to $126m in loans via its “fixed-cost subscription loan services,” in 2022.
Creditspring customers can get up to two loans a year by paying a fixed membership fee rather than interest on loans.
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By GlobalDataThe fintech’s customer-based is said to have grown by 50% since the start of 2022.
Creditspring CEO Neil Kadagathur said: “As people increasingly turn to borrowing to survive the cost of living crisis, it creates a perfect hunting ground for predatory lenders who do not have the best interests of their customers at heart.
“We must do all we can to help people reduce their chances of falling into unmanageable debt – never has this been more important than it is today.
“This fundraise allows us to deliver on our mission to help people across the UK build their financial stability with access to affordable credit and practical guidance.”
Creditspring lead investor Monomyth Group founder Chip Dunn said: “Creditspring is proving to be a major disruptor in the lending sector, providing a much-needed alternative to high-cost, short term loans. Its pioneering subscription finance model is making lending more inclusive, responsible, and fair at a time when borrowers need these qualities most.”
