Sprive, a fintech app that promises to reduce the costs of users’ mortgages, has secured a £5.5m investment.
The vast majority of UK household debt is tied up in mortgages, with interest on repayments and the growing use of 35-years and beyond plans making it difficult for many to keep up.
Sprive claims to be able to encourage faster repayments, avoiding additional interest-based costs, with an AI-powered app that both automates the directing of extra savings towards early repayments and offers access to digital shopping cards with cashback rewards that go towards mortgage debt.
The startup was founded by former Goldman Sachs director, Jinesh Vohra, inspired by his own dissatisfaction with traditional mortgage repayments.
“Sprive is set to have a huge positive impact on our customer’s finances, as our average user is already on track to slash three years off their mortgage term,” Vohra said.
“We’re proud to offer the fastest way to financial freedom for the homeowner and we’re determined to help as many as possible achieve it.”
The new funding round was led by Ascension and included participation from Velocity Capital and Two Magnolias.
Ascension’s managing partner Jean de Fougerolles said: “With mortgage debt becoming an entrenched issue, Sprive’s approach offers a tangible solution to a growing problem. Since downloading the App as part of our DD process, I’ve become a heavy user, taking money off my mortgage with every shop!”
Additional funding came from Channel 4 Ventures, the investment arm of the British broadcaster.
“Our Untapped strategy is about finding solutions to mainstream consumer problems, the great problems that exist in society and in our view there’s no reason why every single residential mortgage holder in the UK should not be using Sprive,” said Channel 4 Ventures head Vinay Solanki.
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