Upgrade

Upgrade primarily focuses on providing credit-related products such as personal loans and credit cards, and checking accounts to individual customers, via a web portal and a mobile app. The company also provides tools for customers to monitor and track their credit health.

The company offers personal loans of up to USD 50,000, which the company claims are offered at relatively lower interest rates, starting at 6.9% per annum, compared to rates offered by traditional financial institutions which start at around 12-13%. The company also provides customers with the flexibility of selecting the amount to be paid monthly and the duration of the loan.

The company also provides credit facilities, which provide lines of credit ranging between USD 500-25,000. The company offers three types of cards: 1) Cash Rewards, which provides unlimited cashback rewards of up to 1.5% of payments 2) Triple Cash Rewards, which provides cashback rewards of up to 3% on payments in home, auto, and health categories and 1% on everything else and 3) Upgrade Card, which provides credit without cashback rewards, with the main intention of improving credit scores. All credit card categories are offered with no application or annual fees. In July 2021, the company also launched a Bitcoin Rewards Card; a credit card that pays out rewards in the form of bitcoin.

The company initially focused solely on the credit segment. However, in January 2021, the company announced the launch of its first checking account facility; ‘Rewards Checking Account’, which also includes a debit card. The account is offered free of charge and provides 2% cashback rewards on everyday expenses and recurring payments, and 1% cashback rewards on all other debit charges. In February 2022, the company further expanded its product offering by launching a new feature called Upgrade Shopping, that offers customers cashback rewards of up to 10% of transaction value at over 20,000 local and national merchants.

In July 2023, the company acquired Uplift, a BNPL service provider focused on serving travelers, for USD 100 million in cash and stock. It aimed to leverage Uplift’s network of airlines , cruise lines, and hotel chains to support its business strategy involving BNPL services.

Key customers and partnerships

The company does not have its own license and operates under the licenses of Cross River Bank and Sutton Bank. It served around 5 million customers as of January 2024.

Fundings and financials

In November 2021, Upgrade raised USD 280 million in a Series F funding round co-led by Coatue Management and DST Global. The new funds will be geared towards strengthening their credit card offering. The round brings Upgrade to a valuation of USD 6 billion, almost double its USD 3.3 billion valuation in August 2021 following a Series E round worth USD 105 million.

As of February 2022, Upgrade had provided USD 12 billion worth of credit to its customers.