Yonder Credit Card Raises £23.4M to Expand its Rewards Platform for Young Professionals

Yonder, a prominent UK-based fintech specialising in reward points for credit cards, has announced a successful funding round of £23.4 million. The investment was co-led by RTP Global and Repeat, formerly known as Jigsaw, with additional participation from Latitude, a sister fund of LocalGlobe. This funding round brings Yonder’s valuation to over £100 million, a significant increase from its previous valuation of £70 million in April 2023. At that time, Yonder secured £12.5 million in equity funding and £50 million in debt financing.

CEO and co-founder Tim Chong confirmed that Yonder has now raised more than £100 million since its inception, and he anticipates this will be the final funding round needed before achieving profitability. The company’s last reported accounts showed a loss of over £4 million for the year ending March 2023, but Chong stated that revenues have tripled in the last year. “This will be the last funding round we have to do. We will be able to operate independently after this,” he emphasized.

Founded in 2021, Yonder caters to young professionals and expats, offering a unique focus on rewards rather than traditional credit-building or borrowing options like buy now, pay later. Competing with established players such as American Express and Avios, Yonder differentiates itself through partnerships with local restaurants and independent merchants, providing users with exclusive experiences. “For us, it’s always been about how you can use credit cards to unlock what’s best in the city and also help you build a healthy relationship with credit,” Chong explained.

Yonder’s approach has gained traction in a challenging market, with over 20,000 users across five UK cities. This success comes amid a growing shift in preference among millennials and Gen Z, who now contribute 33% of total spending on American Express cards. While many expected this demographic to favor BNPL solutions, Yonder’s offering seems to resonate well, particularly for those who value experiences over pure borrowing.

Despite its success, Yonder is selective in its customer base, having received over 100,000 applications but rejecting the majority as too risky. “If you just want to take a credit card out to borrow, we’ve never really been about that,” Chong noted, highlighting that the company’s revenue model relies primarily on interest income, interchange fees, and a £15 monthly membership fee. Yonder also earns from its business partnerships, which, although a minority of its revenue, is the fastest-growing segment.

The new funding will enable Yonder to expand its offerings, particularly in the travel sector. The company has recently partnered with Qatar Airlines, allowing users to earn and use points on flight purchases. Plans are also underway to introduce hotel partnerships and an in-app restaurant booking service, moving Yonder closer to established credit card competitors. Future product developments may include AI tools to personalize recommendations for users, similar to the approach taken by platforms like Spotify or Netflix.

Yonder is also eyeing European expansion, considering AI translation tools to speed up localization in new markets. The company aims to grow its team from 45 to around 60 by the end of next year, with some new hires likely based in its first European launch country. “We built the technology from day one to be international ready,” Chong said, emphasizing their readiness to scale.

The company’s growth strategy is aligned with the evolving preferences of younger consumers, who seek more than just traditional credit benefits. Yonder’s emphasis on city-based experiences, travel benefits, and responsible credit use positions it as a unique player in the fintech space. The latest funding will support Yonder’s vision to become the go-to rewards platform for travel, socializing, and city exploration. With its focus on offering memorable experiences, Yonder aims to reshape how young people interact with credit, both in the UK and beyond.