London Fintech Startup raises new funding from VC investors
- London-based fintech startup Yonder has raised $78 million in debt and equity.
- Founded in 2020, the company offers a subscription fee-based credit card for UK users.
- Yonder has brought in new funding from existing backer Northzone and RTP Global.
Yonder, a London-based credit card startup, has raised $78 million in debt and equity in a new round of funding.
Founded in 2020 by former employees of credit scoring startup Clearscore, Yonder offers users a credit card with rewards such as meals at high-end restaurants and tickets to events for a £15, about $18.80, monthly subscription fee.
The startup began life looking to serve expats in the UK who had no credit scores, but it also serves a wider market of customers living in major cities such as London and Manchester. Despite a depressed macroeconomic environment, Yonder CEO Tim Chong told Insider that consumer spending had not slowed for the company as it looks to expand its product line.
“We typically target more fortunate customers, so we haven’t seen much of a decline in average spend, and our focus is making sure customers are unlocking value,” Chong said.
Yonder claims to have had more than 20,000 applications for its cards. Potential users – most of whom now have a credit history – are put through a credit check, an Open Banking powered affordability check and various know your customer targets.
Yonder previously raised $26 million in debt and equity as part of a seed funding round. This latest increase comes in the form of £12.5 million, roughly $15.7 million, in equity and £50 million, roughly $62.6 million, in debt.
The equity portion was led by Northzone, also backers of Yonder’s seed round, and RTP Global, along with existing investors LocalGlobe, Seedcamp and angels including Beautystack founder Sharmadean Reid, Marshmallow founders Oliver and Alex Kent-Braham, and former footballer Rio Ferdinand.
“We were shortlisted for this Series A, which is a testament to the time we have spent building long-term relationships with investors,” Chong added. “Fintech often goes through waves of being the favorite, and then not the favorite industry, but it’s a huge impact industry for society, so we’re very optimistic.”
The startup’s new funding will go toward expanding the size of Yonder’s team from around 15 employees to 30 over the coming months. Yonder also plans to launch in two more unspecified cities and offer more events to users with its new capital, Chong said.
Check out Yonder’s 11 slide Series A pitch deck below:
