London fintech plans to double headcount following £62.5m Series A funding round

London headquartered challenger credit card Yonder has announced a raise of £12.5m in equity and £50m in debt following its Series A funding round.

The round was co-led by Northzone and RTP Global alongside angel investors Joseph Moore, founder of Crust Bros, and Cred founder Kunal Shah, who join a host of existing investors including Sharmadean Reid, Matt Robinson (GoCardless) and Rio Ferdinand. The funding has resulted in a post-money valuation of more than £70m.

Yonder plans to use the investment to accelerate its growth by doubling its team, expanding its credit rewards offering into new verticals and launching in new UK cities, as it aims to transform the credit market for young professionals.

Since launching publicly in March 2022, Yonder’s “unique” take on loyalty rewards has been designed to re-introduce millennial and Gen Z consumers to credit cards.

Its mission is to help young professionals to build more secure financial futures through responsible use of credit, giving them the ability to build credit scores earlier while providing greater purchase protection and enabling them to unlock more value from their spending.

ClearScore alumni Tim Chong, Harry Jell and Theso Jivajirajah launched Yonder after being unable to find “appealing” credit options available for expats in the UK. Securing FCA authorisation in just nine months, Yonder is one of the UK’s only credit cards that uses Open Banking to evaluate credit suitability.

Co-founder and Yonder CEO Tim Chong commented: “Securing this funding is a real achievement in the current climate, and we feel incredibly fortunate to have the backing of investors who believe in Yonder’s vision.

“We’ve built Yonder as a key to the city for young professionals, which encourages responsible use of credit while helping them to unlock more value from their spending. The response so far has proved to us that we’ve built something that consumers really want, and signals a shift in the way consumers want to use and engage with credit.

“Yonder is a social-first business, so being able to expand to other UK cities and to grow our rewards proposition into other verticals like sport, fitness and theatre as a result of this funding is a huge step, and will mean we can offer our adventurous members more ways to experience more of their city.

“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. 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.”

By Matthew Neville – Senior Correspondent, Bdaily

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