SAN FRANCISCO—Upgrade, a fintech startup that turns credit card balances into installment loans, has closed a fundraising round that values the company at $6.28 billion.
Most of that increase stemmed from steep growth in the company’s revenue, which climbed 70% between June and October, the two fundraising periods, CNBC said.
Upgrade’s main product is a card that turns purchases into fixed-rate installment loans, making the startup the latest company to benefit from the buy now, pay later trend.
“While traditional cards charge more than 18% in interest annually, the Upgrade card starts at 8.99%. That has made it one of the fastest-growing cards in the country,” CNBC reported.