Upstart Holdings, Inc. (UPST) saw its stock price soar 5.07% during intraday trading on Tuesday, following a significant business development announcement.
The surge comes after the company announced it has entered into a $1 billion forward-flow agreement with Eltura Ventures and Aperture Investors, along with co-investors. The 12-month agreement commits the investor group to purchase up to $1 billion of consumer loans originated through the Upstart platform.
This arrangement expands Upstart's funding sources for loans originated on its platform, providing a substantial boost to the company's lending capacity and financial infrastructure. The deal represents a significant vote of confidence in Upstart's platform from institutional investors.
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