UK Lending FinTech Creditspring Raises $60M

London-based FinTech Creditspring has raised $60 million in new capital, bring its total funds raised since its 2016 launch to $88 million, the company announced Monday (May 23).

The lender touts its mission as providing loans that help borrowers increase their credit scores and overall financial stability and stated in announcing the latest fundraise that the capital will allow it to expand its services.

The company stated that for all of 2022 it plans to offer $126 million in loans “through its fixed-cost subscription loan services,” up from $31 million in all of 2021. The lending model provides borrowers with two cash advances per year at pre-determined rates. Creditspring said the approach reduces the extent of surprise costs that borrowers encounter.

Creditspring also announced that its membership has grown to 150,000 from 100,000 over the past five months, an increase of 50%.

The firm attributed the increased demand for household loans to rising concern in Britain about inflation, especially in the costs of energy.

In March, Creditspring announced the launch of a credit-building tool called “Step” that it said would make it easier for borrowers to avoid expensive loans.

See also: UK’s Creditspring Launches New Credit Building Tool

In addition to writing more loans, Creditspring stated in announcing the latest fundraise, the company will double its headcount by the end of the calendar year, including hiring 30 people during the current quarter.

“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,” Neil Kadagathur, co-founder and chief executive of Creditspring, said in a prepared statement. “The significant growth in our customer numbers over the past six months highlights just how many people in the UK are in need of additional financial support.”