A London-based credit card startup has raised £20m in a seed round to disrupt the payments industry ahead of its UK launch.
Credit card challenger Yonder was founded in 2021 as a solution for expats who may have a stable income and mortgage in their home country but are unable to find an attractive loan provider in the UK.
The round was co-chaired by Northzone and LocalGlobe, with Seedcamp attending along with a host of angels including former England footballer Rio Ferdinand.
Yonder’s mission is to restore consumer confidence in credit and remove stress and complexity from the customer experience. The fintech offers a rewards program that is tailored to customers’ lifestyles. The Yonder credit card gives members access to exclusive drinking, dining and leisure experiences with partners such as The Gladwin Brothers restaurants and cricket, as well as the ability to spend money abroad with no foreign exchange fees.
Tim Chong, CEO and co-founder of Yonder said: “For too long credit cards have taken advantage of consumers. Hidden fees, discriminatory credit ratings, and bonuses that belong in the 1990s, all in the interests of the bank’s quarterly profits.
“The new funds will allow us to grow our team and build an incredible array of rewards and features. We are very pleased to have the support of investors with such a strong track record of propelling consumer fintechs to success.”
Jeppe Zink, General Partner at Northzone, commented, “Yonder is creating a modern, digital credit card experience for young professionals that replaces outdated loyalty programs with a highly curated, experience-based membership service. There is an urgent need to reshape the payments industry with the customer at its heart – and Yonder is doing just that.”
Remus Brett, General Partner at LocalGlobe, added: “Credit has gained a bad rap as companies capitalize on a huge pool of profits while neglecting the best interests of their customers. We’ve been actively looking for opportunities to invest in credit challengers, and Yonder has all the qualities we’re looking for at LocalGlobe.”
Carlos Espinal, Managing Partner at Seedcamp, said: “We supported the team at Yonder because they have a vision for how lending products need to evolve from where they are today to cater to the few and established customers, instead of allowing a new generation of customers to live life and experience the best their local community has to offer.”
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