Upgrade Valued at $7.3 Billion After $165 Million Funding Round Led by Neuberger

Upgrade has raised $165 million in a new funding round that values the FinTech at more than $7.3 billion, according to Bloomberg. The round, led by Neuberger Berman’s NB Alternatives Advisers, positions the San Francisco-based company for a potential initial public offering (IPO) within the next two years.

As part of the transaction, Peter Sterling, Neuberger’s head of specialty finance, will join Upgrade’s board of directors. Sterling said the firm has maintained a long-term relationship with Upgrade’s founding team and views the company as a differentiated platform in consumer lending.

Founded in 2017 by LendingClub co-founder Renaud Laplanche, Upgrade focuses on extending affordable credit to mainstream U.S. consumers rather than the younger or lower-income borrowers often targeted by other FinTtechs. The company said it has delivered more than $42 billion in credit to 7.5 million customers through personal loans, credit cards and auto-financing products.

In an interview with Bloomberg TV, Laplanche said the funding round will give the company a capital boost while allowing employees to sell shares ahead of an eventual IPO. “This is probably our last private funding before going public,” he said, adding that the listing could occur within 12 to 24 months.

Since its previous round in November 2021, which valued the company at $6 billion, Upgrade has expanded into secured lending and auto loans, surpassing $1 billion in indirect auto originations in June. The company has raised about $750 million in total equity capital since its inception.

The new valuation reflects growing investor confidence in FinTech lenders positioned for profitability. PYMNTS reported that Wall Street investors are backing FinTechs reinventing lending and credit models by focusing on risk management, transparency and digital-first experiences. Platforms that combine disciplined underwriting with scalable technology, like Upgrade, have attracted attention from institutional backers seeking stable returns.

The momentum also aligns with PYMNTS’ FinTech IPO Index, which shows steady gains in 2025 as investors favor FinTechs with established customer bases and clear paths to profitability.

Upgrade’s latest valuation signals that investor demand for proven FinTech lenders remains strong despite tighter capital markets. The company’s continued growth, profitability focus, and upcoming IPO position it among a new class of digital finance firms bridging traditional banking and technology-driven lending.