Fintech lender Creditspring has raised £48m to grow its team and help meet its aim of lending £100m this year through its affordable credit option to support consumers through the cost-of-living crisis.
The lender supports its members through its fixed-cost subscription loan services and said by paying a fixed fee to access credit, it is easier for people to see the true cost of borrowing, which reduces the risk of a debt spiral.
Last year Creditspring deployed £25m and since the start of 2022, it has grown the number of its customers from 100,000 to 150,000 and expects to add another 200,000 members by the end of the year.
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The fintech said it will also focus funds on growing its team. It aims to double the employee base by the end of the year and plans to hire 30 new staff members this quarter. It will be hiring for positions across all areas of the business, including data, engineering and customer operations.
Creditspring has now raised £70m in total since its launch in 2016.
“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,” said Neil Kadagathur, co-founder and chief executive of Creditspring.
“As people increasingly turn to borrowing to survive the cost of living crisis, it creates a perfect hunting ground for predatory lenders which 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.”