Upstart announced a 12‑month forward‑flow agreement with Wafra, a New York‑based alternative investment manager, that will provide up to $200 million in capital to fund loans originated through its auto‑finance platform.
The forward‑flow arrangement keeps Upstart’s balance sheet light while ensuring a steady supply of capital for its auto‑lending business. The deal allows the company to grow its auto retail and refinance product lines without increasing its own balance‑sheet exposure.
Upstart’s auto‑lending vertical has accelerated rapidly. In Q4 2025, auto originations grew fivefold year‑over‑year, and 92 % of those loans were funded through third‑party partners. The new Wafra commitment adds a reliable source of capital that can support this momentum.
The agreement comes as Upstart posted 59 % revenue growth to $1.08 billion over the last twelve months and returned to profitability. “This partnership arrives as Upstart posted 59% revenue growth to $1.08 billion over the last twelve months while returning to profitability,” said Sanjay Datta, President and Chief Capital Officer. “This partnership demonstrates significant market interest in Upstart’s maturing auto platform.”
Wafra, a New York‑based alternative investment manager with roughly $29 billion in assets under management, said the deal “exemplifies how we work with leaders in the asset‑based finance ecosystem on strategies to deliver credit exposures that offer compelling risk‑reward opportunities for our investors.” Wafra added that its investment will help Upstart “continue our goal of pursuing the best rates and best process to help borrowers with their auto financing needs.”
Upstart’s broader business model is an AI‑driven lending marketplace that connects consumers with banks and credit unions. Over 90 % of its loans are fully automated, and the company has expanded into personal loans, home equity lines, and small‑dollar relief products. The forward‑flow facility strengthens the auto‑finance segment, which now accounts for a growing share of the company’s revenue and is a key driver of its 2026 revenue guidance of roughly $1.4 billion.
The company also announced that Paul Gu will become CEO on May 1 2026, succeeding Dave Girouard, a change that signals continuity in its growth strategy.
With the Wafra capital commitment, Upstart is positioned to capture additional market share in the competitive auto‑finance space while maintaining a lean balance sheet and leveraging its AI underwriting to deliver competitive rates and efficient processes for borrowers.
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