Upgrade to acquire Uplift in $100 million deal

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Upgrade, a prominent provider of personal credit lines and consumer financial products, has announced its agreement to acquire Uplift, a leading buy now, pay later (BNPL) vendor, for $100 million in cash and stock. This move reflects a significant consolidation in the BNPL space, which experienced a boom in recent years, fueled by pandemic-era spending habits. However, Uplift’s acquisition signals potential challenges in the sector.

Strategic Move by Upgrade

In a conversation with TechCrunch, Renaud Laplanche, CEO, and co-founder of Upgrade, revealed that Uplift initially approached Upgrade in May, inquiring about potential participation in Uplift’s Series D financing as a strategic investor. However, Upgrade deemed an acquisition more suitable, given the evident advantages of the deal. The acquisition opens up new possibilities for Upgrade in the BNPL segment, particularly in the travel industry.

The Gateway to the Travel Market

Upgrade recognized that Uplift offered an entry into an untapped segment of the BNPL market—travel. Uplift boasts an impressive distribution network, partnering with 300 of the top airlines, cruise lines, and hotel chains, a feat that would be challenging to build from scratch. This acquisition provides Upgrade with a substantial platform to expand its distribution and user base, catering to the significant financing and payment needs of travel consumers.

Uplift’s Journey in the BNPL Sector

Founded in 2014 by Brian Barth, Uplift initially focused on providing installment plans for travel packages in partnership with major airlines and vacation sites. Backed by significant investors, Uplift was poised for success, but it faced challenges amid a general downturn in the BNPL sector after the pandemic. Companies like Klarna and Affirm experienced sharp valuation drops, leading investors to be cautious about consumer-focused BNPL vendors.

A Transformative Deal for Upgrade

With the acquisition of Uplift, the firm’s customer base doubles, welcoming 3.3 million users to its platform. This development comes as Upgrade considers the possibility of an IPO. Over the years, the firm has diversified its offerings, launching rewards accounts, Bitcoin rewards cards, credit cards with BNPL features, and debit rewards cards. By expanding into the travel market, the firm aims to provide approximately $10 billion in credit by the end of 2023. The Uplift team will integrate into Upgrade in various roles, contributing to the company’s growth and ambitions in the financial sector.

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Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Upgrade to acquire Uplift in $100 million deal

Upgrade, a prominent provider of personal credit lines and consumer financial products, has announced its agreement to acquire Uplift, a leading buy now, pay later (BNPL) vendor, for $100 million in cash and stock. This move reflects a significant consolidation in the BNPL space, which experienced a boom in recent years, fueled by pandemic-era spending habits. However, Uplift’s acquisition signals potential challenges in the sector.

Strategic Move by Upgrade

In a conversation with TechCrunch, Renaud Laplanche, CEO, and co-founder of Upgrade, revealed that Uplift initially approached Upgrade in May, inquiring about potential participation in Uplift’s Series D financing as a strategic investor. However, Upgrade deemed an acquisition more suitable, given the evident advantages of the deal. The acquisition opens up new possibilities for Upgrade in the BNPL segment, particularly in the travel industry.

The Gateway to the Travel Market

Upgrade recognized that Uplift offered an entry into an untapped segment of the BNPL market—travel. Uplift boasts an impressive distribution network, partnering with 300 of the top airlines, cruise lines, and hotel chains, a feat that would be challenging to build from scratch. This acquisition provides Upgrade with a substantial platform to expand its distribution and user base, catering to the significant financing and payment needs of travel consumers.

Uplift’s Journey in the BNPL Sector

Founded in 2014 by Brian Barth, Uplift initially focused on providing installment plans for travel packages in partnership with major airlines and vacation sites. Backed by significant investors, Uplift was poised for success, but it faced challenges amid a general downturn in the BNPL sector after the pandemic. Companies like Klarna and Affirm experienced sharp valuation drops, leading investors to be cautious about consumer-focused BNPL vendors.

A Transformative Deal for Upgrade

With the acquisition of Uplift, the firm’s customer base doubles, welcoming 3.3 million users to its platform. This development comes as Upgrade considers the possibility of an IPO. Over the years, the firm has diversified its offerings, launching rewards accounts, Bitcoin rewards cards, credit cards with BNPL features, and debit rewards cards. By expanding into the travel market, the firm aims to provide approximately $10 billion in credit by the end of 2023. The Uplift team will integrate into Upgrade in various roles, contributing to the company’s growth and ambitions in the financial sector.

Also Read The Latest News:
Reddit trials its own verification mark and new accessibility features

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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