In 2019, a group of fintechs with names like Dave and Varo stood poised to disrupt the U.S. banking giants. Built around a digital-first strategy that didn’t require branches and tellers, the upstarts looked like the wave of the future—until they stumbled badly in the face of a shifting economic and regulatory climate. One of these fintechs, or neobanks if you prefer, found a way to defy this broader trend: Today, the San Francisco–based startup Upgrade is sitting pretty with a diversified line of businesses and a fresh infusion of capital.
On Thursday, Upgrade announced it has raised $165 million in a Series G funding round led by Neuberger Berman Funds that values it at $7.3 billion. The firm now has 7.5 million customers across its various offerings, which range from checking accounts to loans to buy-now, pay-later service Flex Pay.
