The credit industry has gained criticism over the years, and rightly so with many companies profiting from their customers, rather than putting their best interests at heart. We believe there’s a huge opportunity for a challenger to come in and create a proposition that genuinely serves people’s needs. That’s why we are excited to back Yonder as they come out of stealth with their new credit card, built by ClearScore alumni, and with £20M in funding following a pre-seed round we led of £850k in February 2021.
The concept for Yonder was borne of CEO Tim Chong’s frustration with the struggle of accessing a quality credit provider as an Australian in London – despite a successful career and excellent credit score back home. While credit cards hold the key to building a credit score, securing purchase protection, managing cash flow, and numerous membership perks, Chong found countless customers were underwhelmed by the options available. The market size for ‘credit invisible’ customers who are underserved by current credit providers stands at 5.8 million people across the UK. Yonder’s mission is to restore consumers’ confidence in credit and eliminate stress and complexity from the customer experience.
“For too long, credit cards have short-changed and/taken advantage of consumers. Hidden fees, discriminatory credit scoring, and rewards that belong in the 1990s, all in the interest of the bank’s quarterly earnings,” said Yonder’s CEO and co-founder, Tim Chong. “We’re challenging the status quo with a beautiful card that helps our members discover the best of their city, and a promise to put the customer first.”
On our investment, our Managing Partner, Carlos Espinal, comments:
Credit and credit products do much more than simply allow people to buy things, increasingly, they can be the conduit to showcase what you want to support, and how you want to live your life. We backed the team at Yonder because they have a vision for how credit products need to evolve from where they are today, catering to the few and well established, rather than enabling a new generation of customer to live life and experience the best of what their local community has to offer.
Yonder’s mission is to make credit rewarding and empowering, taking the stress and complexity away from a tired industry. Their credit card rewards customers with access to exclusive drinking, dining and leisure experiences with partners including The Gladwin Brothers and Gunpowder restaurants; it will also provide comprehensive travel insurance and the ability to spend abroad with zero FX fees. The company takes a novel approach to evaluating credit suitability which is based on transaction data, using open banking to build a more nuanced, personalised picture of its customers’ spending habits than relying on traditional credit checks alone. They’re launching an iOS and Android app with the modern credit card basics you expect like Google Pay and purchase notifications. Yonder secured FCA authorisation in just nine months.
Joining Chong on his mission to transform customers’ relationship with credit are co-founders Theso Jivajirajah and Harry Jell, also of ClearScore, alongside senior talent from Monzo and Wise.
“The new funds will enable us to double our headcount and pack Yonder’s credit card with unrivalled features. We’re thrilled to have the backing of investors with such a strong track record in propelling consumer fintechs to success,” said Chong. “Our customers are adventurous spirits who want to unlock the best of their cities, and we’re partnering with some of the hottest experience providers in London to make sure their Yonder membership will deliver bang for their buck. We can’t wait for members to experience credit the way it should be.”
We’re delighted to join Northzone and LocalGlobe who are leading the round alongside angel investors including Sharmadean Reid, Marshmallow founders Oliver and Alex Kent-Braham, and Rio Ferdinand.
For more information and to sign up visit yondercard.com