The UK company plans to lend £100m to support its members over the course of 2022.
Creditspring, a fintech company aiming to provide affordable credit through a subscription model, has raised £48m to support its rapidly growing customer base with more loans this year.
It will use the funds raised to support more members to avoid high-cost lenders and manage their finances through the cost-of-living crisis.
The company plans to use the funds to lend £100m to support its members over the course of this year through fixed-cost subscription loan services, four times as much as the total lending in 2021.
“As people increasingly turn to borrowing to survive the cost of living crisis, it creates a perfect hunting ground for predatory lenders who do not have the best interests of their customers at heart,” Creditspring co-founder and CEO Neil Kadagathur said.
“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.”
Kadagathur said the company’s growth over the past six months shows the need for additional financial support in the UK at the moment.
The number of Creditspring members has increased by 50 per cent since the start of the year, from 100,000 to 150,000, and it expects to add an additional 200,000 members by the end of the year.
Its subscription model allows customers access to two advances a year with fixed fees to access credit.
Kadagathur said the money will allow the company to deliver its mission to help people “build their financial stability” through access to “affordable credit and practical guidance”.
“Creditspring is proving to be a major disruptor in the lending sector, providing a much-needed alternative to high-cost, short term loans,” Monomyth Group founder, CEO and lead investor Chip Dunn said.
“Its pioneering subscription finance model is making lending more inclusive, responsible, and fair at a time when borrowers need these qualities most.”
The latest fundraising round brings the company’s total amount raised since launching in 2016 to £70m.
Creditspring declined to share the breakdown of the raise.