A British credit card rewards start-up aimed at millennials and Gen Z consumers has stumbled upon a combined business model that has now brought it £12.5 million ($15.4 million) in an equity round of investors.
Over there is the closest credit card to AMEX or Chase Sapphire in the US, but it combines that credit card store model with a points-based rewards system for use in London locations such as cinemas, wine merchants and eateries. In other words, it’s like it’s a combination of a travel experience start-up and a credit card.
Indeed, co-founder Tim Chong, Yonder CEO, told me, “One customer literally described us as a combination of Amex, meets Secret London/NYC and Monzo.”
In addition to the £12.5m in equity round, it has also raised £50m in debt to expand its UK offerings beyond its London home base.
As Chong told me, “We are not a bank. So we have to fund the credit card receivables when you spend on the card. It’s a debt warehouse. So the debt specifically finances the credit card assets.
The Series A funding round was backed by capital firms Northzone and RTP Global, with angel investors Joseph Moore, founder of Crust Bros, and Kunal Shah, founder of Cred, joining existing major shareholders Sharmadean Reid, GoCardless founder Matt Robinson, and former soccer player Rio Ferdinand.
“It brings together much more of a fellow-citizen experience, rather than just making a bunch of financial products. It’s very much based on experience, much more like how you might describe an Airbnb experience rather than the Booking.com experience. Right now, right where we’re starting, but our plan is to take this global,” Chong added.
Expat founders Chong, Harry Jell and Theso Jivajirajah launched Yonder after they couldn’t find good credit opportunities for ‘expats’ in the UK.
Yonder plans to expand its round to members through a private crowdfund, which will go live in April.
The financing has resulted in a post-money valuation of over £70 million.
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