UK credit card start-up Yonder exits stealth, raises £20m
A new UK lifestyle credit card challenger, Yonder, has emerged from stealth and secured a £20 million seed round ahead of its UK launch.
The round was co-led by Northzone and LocalGlobe and saw participation from Seedcamp alongside a host of angel investors, including WAH Nails founder Sharmadean Reid, Marshmallow founders Oliver and Alex Kent-Braham, and footballer Rio Ferdinand.
The investment follows a pre-seed round of £850,000 in February 2021 led by Seedcamp and LocalGlobe.
Yonder is designed for the five million-strong ‘credit invisible’ market underserved by current credit providers.
CEO Tim Chong says: “For too long, credit cards have taken advantage of consumers. Hidden fees, discriminatory credit scoring, and rewards that belong in the 1990s, all in the interest of banks’ quarterly earnings.”
Rather than rely on credit checks, Yonder analyses transaction data gleaned from open banking to evaluate credit suitability and build a more personalised picture of its customers’ spending habits.
Yonder also offers a rewards programme inspired by hundreds of user research sessions with Londoners to learn how they spend their time and money.
Chong adds the new funds will enable the firm to expand its team, offer more rewards, and build out new features.
Yonder was founded in 2021 by Chong, Theso Jivajirajah, and Harry Jell, also of ClearScore, alongside senior talent from Monzo and Wise.
The start-up’s waitlist is now open to customers in London who can apply to join its Founding Members’ programme for early access to the credit card.