Credit card startup Yonder bags £20m funding with backing from Rio Ferdinand

A London-based startup backed by ex-footballer Rio Ferdinand looking to shake up the credit card industry has raised £20m in funding.

Yonder has emerged out of stealth mode by bagging £20m in seed funding and is now plotting to take on legacy credit card companies with its pledge of offering a modern, contemporary credit card.

To date, it has raised £20.85m, following a pre-seed rise of £850,000 last year.

The startup was founded last year by ClearScore alumni Tim Chong, Theso Jivajirajah and Harry Jell.

The funding round was co-led by Northzone and LocalGlobe, with Seedcamp also participating.

The funding round also attracted a host of angels, including entrepreneur Sharmadean Reid, Marshmallow founders Oliver and Alex Kent-Braham, and Rio Ferdinand.

Around 30 million people in the UK have at least one credit card and Yonder is entering a highly competitive market.

Yonder’s play is to “eliminate” the stress and complexity associated with incumbent credit card offerings, it says, by offering a friendlier customer offering.

“For too long, credit cards have taken advantage of consumers,” said Chong.

“Hidden fees, discriminatory credit scoring, and rewards that belong in the 1990s, all in the interest of bank's quarterly earnings.

“We’re challenging the status quo with a beautiful card that helps our members to discover the best of their city, and a promise to put the customer first.”

Yonder says the market size of those underserved by current credit card providers stands at around five million in the UK.

It says it will use the funds to expand its team and help build its rewards offering.

Yonder believes the rewards schemes offered by legacy operators are outdated.

As an alternative, its loyalty offer will be around “real people’s lifestyles”. This will include exclusive drinking, dining and leisure experiences, it says.

Jeppe Zink, general partner, Northzone added: “We have seen the rise of a $300 billion fintech industry, predominantly driven by customers demanding better seamless financial services, and yet a key service has not changed for decades: credit cards. 

“Yonder is creating a modern, digital credit card experience for young professionals that replaces outdated loyalty programmes with a highly curated experience-based membership service. 

There is an urgent need to redesign the payments industry with the customer at the heart.”

Remus Brett, general partner, LocalGlobe added: “Credit has earned a bad rap, with companies benefiting from a huge profit pool while sidelining their customers’ best interests. We’ve been actively looking to invest in credit challengers, and Yonder has all the qualities we look for at LocalGlobe.”