London-based rewards credit card startup Yonder has raised £62.5 million in a Series A funding round. The company says that the new capital will be used to double its team size to expand into new verticals and launch in new UK cities.
The £62.5 million Series A comprised a £50 million debt facility and £12.5 million in equity. The round was co-led by Northzone and RTP Global and saw angel investors Joseph Moore, founder of Crust Bros, and Cred founder Kunal Shah, join a number of existing investors including Sharmadean Reid, Matt Robinson (GoCardless), and Rio Ferdinand.
According to Yonder CEO and co-founder Tim Chong, credit cards have taken advantage of consumers for far too long. “These cards are ridden with hidden fees, discriminatory credit scoring, and rewards that belong in the 1990s, all in the interest of the bank’s quarterly earnings. We’re challenging the status quo with a card that helps our members to discover the best of their city, and a promise to put the customer first.”
While offering an array of rewards is nothing new, the startup claims its rewards programme is designed around real people’s lifestyles, inspired by hundreds of user research sessions with Londoners to learn how they really spend their time and money.
Obtaining FCA authorisation in just nine months, the platform is evaluating credit suitability based on transaction data, using open banking to build a more personalised picture of its customers’ spending habits than relying on traditional credit checks alone.
“The credit market needs a rebuild, and we firmly believe change happens through intuitive products designed to help customers with their best interests at heart, not just blog posts on a website,” said Chong. “This investor support will help us on our journey to completely rebuild consumer relationships with credit and show that Yonder is a company they can trust. We can’t wait for more people to experience credit the way it should be.”